EU Digital Fairness Act targets loot boxes and virtual currency in games

The European Commission has published its proposed Digital Fairness Act, a broad consumer law that names video games specifically and could reshape monetisation worldwide. The draft would become European law probably between 2028 and 2029, with fines of up to six percent of worldwide annual turnover, or up to 2m euros where turnover is not available. For players and parents, the practical effect would be new limits on loot boxes and paid virtual currencies, especially for minors.

Paid loot boxes face ban for minors and off-switch

The proposal uses terms such as variable reward systems and uncertainty-based rewards for loot boxes. Paid-for virtual currencies must be disabled by default for minors, defined as anyone under 18, and activated only with parental or guardian approval. Paid loot boxes shall not be offered to minors at all. Games must also provide a way for everyone to disable paid loot boxes completely and clearly show the probability of receiving items from them.

Business analyst George Osborn, who runs the Video Games Industry Memo newsletter, described the change as really big in comments to Eurogamer. He said companies including EA, Xbox, Activision Blizzard and PlayStation, across console and mobile, will be really concerned. Implementation would require identifying minors, building what he called a master switch to turn paid loot boxes off, and displaying item costs in local currency when virtual currency is used. He noted EA Sports FC Ultimate Team as an example where paid card packs could theoretically be switched off or age-gated, while card games with random paid rewards at the core would face harder design changes.

Why one EU law could reset game spending globally

The Act would also affect subscription services such as Xbox Live, PlayStation Plus and Nintendo Online, requiring easier cancellation and clearer prices, plus access to a human in customer service rather than only a chat bot. For companies selling into the European Union, compliance would require investment in age checks, store displays, parental controls and support systems. Osborn argued few publishers would abandon a market of a few hundred million consumers, and pointed to USB-C chargers and the Switch 2 removable battery as cases where a European Commission rule shaped products sold elsewhere.

The source does not state that loot boxes will disappear, and Osborn said he is not sure this will be the end of them as currently known. Some companies have quietly moved away from loot boxes for reputational reasons, while others such as EA may find it difficult to leave a long-standing model and card-based deck-building games will struggle to avoid random rewards. What is still unknown is the final text after discussion and amendments, how age verification will work in practice, and whether regulators outside Europe will copy the approach. The proposal is a Commission draft, not final law, and applies only within the European Union unless other policymakers adopt similar rules.