The European Commission has released a draft of the proposed EU KIDS Act, which aims to restrict children’s access to social media platforms in the EU. The Act includes controversial measures such as a ban for under 13-year-olds and restrictions for those under 15, specifically targeting social networks, video sharing platforms, and online games. If approved, these rules will have a significant impact on the online gaming industry in EU territories. Here is an initial analysis of the proposed Act.
Online game providers will need to ensure that minors are not encouraged to use their platforms excessively. This means that certain features like login bonuses or penalties for not playing for a certain period may be prohibited. Age ratings under systems like PEGI and USK have already considered these factors, but the KIDS Act takes a broader approach that could affect various online gaming experiences.
The draft Act also emphasizes the need to restrict contact between minors and other users on online gaming platforms. To comply with these new obligations, providers will be required to implement parental controls and age verification solutions. While these requirements are less stringent than those for social networks, they still pose challenges for the gaming industry.
Additionally, the Act introduces new provisions regarding age rating and online games, extending beyond existing frameworks like PEGI. It also addresses the issue of transparency in virtual transactions, particularly concerning loot boxes and variable reward systems, which have been subjects of scrutiny in the gaming industry.
One notable inconsistency in the draft is the treatment of economic transactions in online games. While the recitals mention transparency in monetary transactions, the operative text limits these rules to social networking and video-sharing platforms. This discrepancy raises questions about the scope of monetization transparency in online games.
The KIDS Act is intended to be a direct regulation in EU member states, pending approval by the Parliament and Member States. The proposed text is subject to further review and potential amendments.
Dr. Andreas Lober, a partner at ADVANT Beiten, specializes in advising leading games companies on youth protection and consumer law.