Key facts
- The proposed Digital Fairness Act would ban games from earning money via micro-transactions offered to minors to advance play.
- In-app virtual currencies would be switched off by default for players under 18 under the proposal.
- The Commission proposed fines of up to 6% of global revenue where violations affect more than two-thirds of the EU population.
- Video Games Europe and the European Game Developer Federation said the pay-to-win definition could cover any purchase.
- The associations said the proposal ignores PEGI content ratings and existing parental controls.
The European Commission unveiled a set of consumer protection proposals on November 11, 2026, including the Digital Fairness Act, which would place the first sector-specific limits on the video-game industry alongside the EU's mid-September regulation to protect children online.
Under the proposed DFA, which still must be negotiated with other EU institutions, games would no longer be able to earn money by offering minors micro-transactions to advance, practices known as pay-to-win or pay-to-progress. The proposal also restricts loot boxes, which contain surprise virtual items bought with real money, and requires in-app virtual currencies to be off by default for under-18s.
The Commission said these practices encourage overspending, particularly among vulnerable consumers such as children. Violations could draw fines of up to 6% of global revenue in cases affecting more than two-thirds of the EU population.
"We want the European gaming industry to continue to thrive," said Michael McGrath, the commissioner for consumer protection. He said competition should rest on "creativity, innovation, and quality, and not on practices that exploit consumers."
In a joint statement, the European Game Developer Federation, which represents EU firms, and Video Games Europe, whose members include Sony and Epic Games, called the proposed pay-to-win definition "fundamentally flawed, lacks clear definitions and would create huge confusion for players and developers alike" because it could cover "any purchase." The groups said the industry already regulates itself through parental controls and the PEGI rating system, which they said the DFA does not take into account. "Effectively, the DFA moves all decisions from parents and children to the Commission," they wrote.
The bloc is home to developers of globally popular games including Angry Birds and The Witcher. Video game spending in the EU topped €27 billion last year, 17% of the global market, according to the European Audiovisual Observatory. The DFA also targets other online commerce practices, including addictive design, dynamic pricing and hard-to-cancel digital subscriptions.