The EU KIDS Act: What game developers need to know

A major point of contention is the crackdown on "excessive use" by minors. Under the KIDS Act, minors are defined as persons under the age of 18. This means that mechanics such as login bonuses or the loss of benefits for not playing for a certain period may often be prohibited. For developers of persistent worlds, this poses a difficult question: the rule reaches beyond simple loyalty mechanics to anything that penalizes a player for not returning at set intervals. Designers must now consider whether the game, as a whole, pulls minors back on a schedule.

Online protection is another key focus. The draft requires the implementation of parental controls and age assurance solutions. While social networks must rely on dedicated EU age verification, online games may use more proportionate methods like age estimation, provided they are accurate, privacy-preserving, and non-discriminatory. However, self-declaration alone will not be sufficient. Additionally, the Act proposes Codes of Conduct for age ratings, which could turn the voluntary PEGI framework into a legally binding system.

The regulation also introduces new rules for "AI companions" and conversational chatbots. These systems must avoid design features that simulate interpersonal relationships likely to create emotional dependencies. They are also prohibited from using information from previous interactions with minors, except for safety reasons. This raises questions for the industry regarding LLM-powered NPCs: would an NPC interacting with a player character rather than the real user fall under the definition of an AI companion?

Regarding lootboxes and virtual currencies, the draft remains somewhat contradictory. While the recitals mention protecting minors from variable reward systems, the operative text applies transaction transparency rules to social networks and chatbots, but not explicitly to online games. This issue will likely continue to be debated during the lawmaking process or through future digital fairness legislation.

Violators could face fines of up to 6% of their total worldwide annual turnover. As the Commission has presented a fully fleshed-out text, the adoption process might move quickly. For any Game Developer, the current challenge is deciding whether to implement strict age assurance or to design products that are safe for all age groups by default.