European Mobile Game Makers Criticise EU Pop-Up Proposals
Emily Patel 
Key Takeaways:
- European mobile gaming companies oppose the EU's Digital Fairness Act proposal.
- Proposed rules could mandate pop-ups for virtual currency purchases.
- Industry leaders warn the changes could make mobile games "unplayable."
- Regulations are feared to disproportionately harm European tech competitiveness.
European mobile gaming companies, including Finland’s Supercell, Sweden’s King, and Denmark’s Sybo, have voiced strong opposition to an upcoming proposal by the European Commission. The proposed Digital Fairness Act could mandate frequent pop-ups for in-game virtual currency purchases, potentially rendering popular mobile titles like Clash of Clans, Candy Crush Saga, and Subway Surfers "unplayable" in Europe. These industry leaders warn that the regulations risk undermining a significant European tech sector.
Regulatory Details and Technical Implications
The European Commission's proposal for the Digital Fairness Act could require mobile casino game providers to display a pop-up to players each time they use virtual currency that was acquired with real money. Ilkka Paananen, CEO of Supercell, estimated that players in a typical short session of one of their mobile games could encounter up to 40 such pop-ups, likening them to website "accept cookies" prompts. Todd Green, President of King, further explained that the proposal also seeks to display the real-world value of virtual currencies. Given that many mobile games feature three to seven different currencies, some of which cannot be purchased, integrating these values onto a mobile screen would make games "confusing and less attractive," according to Green.
Mobile Industry Impact and Competitiveness
Industry representatives assert that the proposed legislation would severely impact the mobile gaming sector, which generated almost €8bn in revenues and created over €5bn of economic value in Europe last year. Paananen highlighted that mobile games represent one of the very few industries where Europe, particularly the Nordics, holds a leadership position. He expressed concern about the broader implications for European competitiveness, suggesting that the rules would disproportionately affect European companies while strengthening competitors from outside the region, such as Chinese players like Tencent. The companies collectively warned that the proposals would result in players in the US and Asia experiencing a superior gaming environment, making Europe a much smaller market for international mobile gambling markets.
Executive Concerns and Policy Misunderstanding
Mathias Gredal Nørvig, CEO of Sybo, indicated that Brussels appears to misunderstand the nuances of the mobile gaming industry. He noted that the proposals seem to be based on out-of-date anecdotes regarding parents being surprised by high bills from children's online purchases, rather than a contemporary understanding of the sector. Nørvig argued that "Some of the legislation proposed now looks more frightened from not understanding, rather than wanting to understand the nuances of what gaming can actually do." He further stressed that scientific evidence overwhelmingly supports the positive impacts of age-appropriately played games where parents are engaged. Supercell, for instance, generated €2.9bn in revenues and €930mn in operating profits last year, paying €220mn in corporate tax in Finland, underscoring the economic contribution of these mobile-first companies.
