Europa’s leading mobile gaming companies, such as Finnish Supercell, Swedish King and Danish Sybo, have issued a strong warning about União Europeia’s new proposals. Segundo executives, the regulations being analyzed by Comissão Europeia, part of the so-called ‘Digital Fairness Act’, could make their games “unplayable” and, consequently, strangle one of the few technology sectors where the European continent holds global leadership. The criticism comes amid fears that the legislation, designed to protect consumers, could unbalance the market and unduly penalize established companies.
Executivos-heads of the gaming giants, responsible for global titles such as ‘Clash of Clans’, ‘Candy Crush Saga’ and ‘Subway Surfers’, expressed their concerns directly to Financial Times. Eles claim that the impact of the proposed rules would be disproportionately harmful to European companies, which together generated more than €5 billion in economic value and approximately €8 billion in revenue at Europa last year. Este positioning highlights the growing tension between Bruxelas’s desire for greater consumer protection and the technology industry’s fear that overly stringent regulations could curb innovation and regional competitiveness.
Impacto severe on gaming experience and business model
The developers’ main concern lies in the possibility of being forced to display pop-ups whenever players use virtual currencies that were purchased with real money. Ilkka Paananen, CEO of Supercell, creator of ‘Hay Day’ and ‘Brawl Stars’ as well as ‘Clash of Clans’, estimated that in a typical short gaming session, a player could encounter up to 40 of these warnings. Ele compared the situation to the repetitive “accept cookies” prompts found on websites, which he said would make games “basically unplayable on Europa.”
The “free-to-play” model, which allows most players to access titles like ‘Candy Crush’ and ‘Subway Surfers’ for free, is critical to these games’ success and vast user base of hundreds of millions. However, a portion of players choose to pay to speed up progress, acquire new characters or special designs, generating significant revenue for companies. Supercell, for example, recorded €2.9 billion in revenue and €930 million in operating profits last year, while paying €220 million in corporate taxes on Finlândia alone. Esse revenue stream is vital to the maintenance and ongoing development of the games and technology infrastructure.
Preocupação with European competitiveness on the global stage
European leadership in the mobile gaming sector is a point of pride and a central argument in executives’ criticisms. “Mobile gaming is one of the few industries where Europa, and specifically the Nordic countries, can claim to be a leader,” said Paananen. Ele highlighted that the situation is “really scary” when considering European competitiveness in general, suggesting that the proposals could undermine this advantageous position. The sector has been an engine of growth and innovation, creating jobs and generating substantial economic value for the region.
Todd Green, president of King, highlighted another complication: the requirement that games show the real money value of virtual currencies. Ele explained that many games use between three and seven different currencies, some of which are not purchasable with money, which would make displaying their values on a mobile screen “confusing and less attractive” for users. The complexity of translating these internal game values into the real world in a timely and clear manner on small devices is a considerable technical and usability challenge.
Desentendimento from Bruxelas on industry dynamics
Mathias Gredal Nørvig, CEO of Sybo, producer of ‘Subway Surfers’, argued that Bruxelas fails to understand the nuances of the mobile industry. Ele believes the proposals are based on “outdated anecdotes” about parents being surprised by their children’s high online shopping bills, rather than an in-depth analysis of how the market currently works. Nørvig emphasized that science demonstrates the “overwhelmingly positive” impacts of games, as long as they are age-appropriate and with parental involvement.
The three business leaders agree that the EU proposals would lead to a superior gaming experience for players on Estados Unidos and Ásia, strengthening companies in these regions. “This would make Europa a much smaller market for mobile games,” Paananen said, reiterating that the rules would disproportionately affect European companies rather than big Chinese players like Tencent. The industry fears that, in trying to protect, European legislation will end up weakening its own technological champions, giving ground to competitors from other continents.
Principais companies and games impacted
Companies leading the mobile gaming market on Europa, and who spoke out against União Europeia’s proposals, include:
- Supercell:Sediada at Finlândia, is known for strategy and combat games, such as ‘Clash of Clans’, ‘Hay Day’ and ‘Brawl Stars’.
- King:Of Swedish origin, it is famous for its puzzle games, the most prominent being ‘Candy Crush Saga’.
- Sybo:Danish Empresa, widely recognized for the popular infinite runner game ‘Subway Surfers’.
Essas companies represent a significant portion of innovation and revenue in the European mobile gaming sector, contributing to the continent’s economy and technological presence on the global stage. Current discussions with Comissão Europeia are crucial in defining the future regulatory and operational environment for the gaming industry in the region.
