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EU Mobile Gaming Regulatory Clash

Financial Times Companies •
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Makers of popular mobile games like Clash of Clans and Candy Crush have warned EU proposals could cripple their industry. The executives of Supercell, King, and Sybo told the Financial Times that upcoming rules forcing pop-ups for virtual currency purchases would make games "unplayable" and hobble one of Europe's few tech leadership areas. This rare sector where Europe leads faces significant regulatory threats.

The free-to-play model has made these games global hits with hundreds of millions of players. Most users pay nothing, while some spend to accelerate gameplay. Supercell alone generated €2.9bn in revenues last year, creating €930mn in operating profits and paying €220mn in Finnish corporate tax. The industry produced more than €5bn in European economic value and €8bn in revenues last year.

Executives estimate players would face 40 pop-ups during typical gaming sessions under the proposed Digital Fairness Act. The warnings come as Brussels pushes to show real-world currency values. This regulatory burden would disproportionately hurt European companies versus Chinese competitors like Tencent, potentially pushing players to US and Asian alternatives. The rules could shrink Europe's mobile gaming market significantly.