A proposed new law in the European Union aims to implement extensive restrictions on online gaming.

The European Commission has introduced a preliminary version of the EU KIDS Act. This legislation, which aims to shield children from certain online risks, primarily affects social media and video platforms with its notable rules such as prohibitions for those under 13 and restrictions for those below 15. Importantly, these provisions extend to the realm of online gaming within EU regions, affecting a wide range of online game features, from global platforms like Roblox to traditional multiplayer modes.

A key part of the draft mandates that online game providers discourage minors from excessive gaming. As such, mechanisms like frequent player rewards or penalties for inactivity might face bans, though there may be ways to integrate these features within the guidelines. These aspects have grown in importance under PEGI and USK rating systems, but the KIDS Act seems less discerning, creating potential challenges for ongoing game worlds.

Another obligation from the draft is to limit minors' interactions with other users. Thus, online game providers will need to employ parental controls and age verification tools, although these requirements are slightly less demanding compared to those for social networks.

Further, the Act mentions a new approach to age ratings and games, referring to PEGI while imposing stricter obligations. It also revisits the long-standing debate of transparency in transactions performed with virtual currencies and variable rewards, a topic reminiscent of loot boxes and central to discussions highlighted in the BEUC Report.

Curiously, the draft presents inconsistencies here: it addresses this topic only in explanatory sections and omits it in the main legal text, restricting transaction transparency rules to social networks and video-sharing platforms. This raises questions about whether this gap is a mistake or a strategic attempt to regulate game monetization through mentioned guidelines, albeit indirectly.

This regulatory proposal, once enacted, will uniformly apply across EU nations, although it requires ratification by the European Parliament and member states.

Dr. Andreas Lober, a partner at ADVANT Beiten, advises key gaming companies on issues regarding youth protection and consumer laws.