EU Digital Fairness Act targets gamification risks

The European Commission wants to set firm rules against excessive spending on digital platforms and to tighten gamification mechanics that encourage players to spend. To this end, new provisions have been added to the draft Digital Fairness Act (DFA). They address online applications that reward spending or excessive play.

According to the Commission, the law will allow EU authorities to intervene more effectively in unfair practices in digital markets and will guarantee that all commercial operators follow the same rules. The law aims to protect consumers of all ages who shop or browse online. The draft has been in preparation since 2022 and is seen as a kind of conformity check for all digital platforms serving the mass market.

The goal of the law is better protection for European consumers and fairer competition for businesses. It is expected to save EU consumers up to 13.7 billion euros per year. In Brussels, the Commission presented the main innovations and the key elements of this protection.

The law is designed to preserve the power of EU member states to manage their own gambling markets. Obligations on licensing and operator conduct will remain with national governments and regulators. The Commission does not propose any change to gambling autonomy, but the 'fairness by design' provisions may overlap with existing national rules.

Under fairness by design, addictive design features that encourage excessive or coercive spending, for example persistent warnings, will come with an option that consumers can turn off. Pay-to-win and pay-to-progress mechanics, which are gambling-like features, will be banned for minors. For licensed operators, the key question is how these general consumer protections will overlap with gambling-specific requirements, particularly in marketing and digital engagement.