Supercell CEO Warns EU’s Digital Fairness Act Could “Cripple” Europe’s Gaming Industry

Supercell CEO Ilkka Paananen has raised serious concerns about the European Union’s proposed Digital Fairness Act and related consumer protection guidelines, warning that they could “kill one of Europe’s biggest tech success stories.”

In an open letter published on LinkedIn, the Finnish executive argued that the regulations would fundamentally disrupt how in-game currencies function, damaging both the player experience and the economic backbone of Europe’s thriving gaming sector.

What’s behind the EU’s new proposals?

The proposed Digital Fairness Act and updated Consumer Protection Cooperation (CPC) Network Guidelines are designed to tighten how digital currencies and virtual goods are purchased and used, especially in games. The European Commission says these measures aim to better protect children and vulnerable consumers from manipulative monetization tactics.

However, according to Paananen, the new framework could unintentionally “deliver a critical blow” to the region’s gaming businesses. “To dismantle these mechanics in the name of protecting consumers represents a fundamental misunderstanding of how modern digital entertainment works,” he wrote. “The regulations would worsen the player experience without improving protections, and would cause widespread collateral damage to one of Europe’s biggest technology success stories.”

Under the proposed model, every time a player spends an in-game coin or gem, it could legally count as a separate financial transaction requiring disclosure, consent, and contract rights -- much like real-world purchases. To illustrate, Paananen compared it to a theme park token system: imagine if families had to approve every ride individually after buying tokens at the entrance. The experience would quickly turn into a "bureaucratic nightmare."

“These are the same mechanics that make games convenient, engaging, and accessible,” he explained. “Breaking them doesn’t simplify gaming - it ruins it.”

Industry groups join the call for dialogue

Backing Paananen’s stance, the European Games Developer Federation (EGDF) also released a statement urging policymakers to reconsider. “In-game currencies play a central role in free-to-play mobile games, which are the foundation of the success achieved by the European mobile games industry,” the group said. It warned that significant operational changes could “seriously weaken performance and jeopardize future growth.”

Both Paananen and the EGDF are calling for meaningful industry dialogue with EU regulators before any laws are finalized. “The decisions made today will determine whether Europe remains a continent where digital industries thrive or becomes a cautionary tale of how good intentions destroy competitive advantage,” Paananen said.

What’s next for the Digital Fairness Act?

The European Commission’s final proposals are expected in Autumn 2026, leaving a window for public and industry feedback. Paananen urged regulators to rely on evidence-based policymaking, not hypothetical risks, and to preserve existing frameworks that already prioritize player safety.

The Full Open Letter Is Below:

Let's not kill one of Europe's few tech success stories

What do Clash of Clans, Candy Crush, Minecraft, and The Witcher have in common?

Yes, they're all wildly popular video games played by millions around the globe. They're also all made in Europe.

It's no secret that European tech as a whole has been lagging behind the US and Asia. The €27 billion games industry has been the outlier and one of the few beacons of tech success for the continent, setting the standard for games studios globally. Yet, policymakers are about to deliver a critical blow to the sector, despite calling out for Europe to become more competitive on the global stage.

All this value is now under threat by a future Digital Fairness Act and recent Guidelines from the Consumer Protection Cooperation (CPC) Network - a series of proposals that will break how many games fundamentally work. The mechanics of digital content, such as in-game currencies, have been integral to industry business models from the beginning. They enable companies to offer games for free to millions of players, whilst fuelling innovation, jobs and growth across the continent.

To dismantle these mechanics in the name of protecting consumers represents a fundamental misunderstanding of how modern digital entertainment works. The regulations would worsen the player experience without improving protections, and would cause widespread collateral damage to one of Europe's biggest technology success stories.

Consider this analogy: A family visits a theme park and buys tokens - sometimes in bulk discounts, sometimes individually. Children can even win them through games. The tokens make the experience convenient and fun, avoiding repeated cash transactions.

Under the proposed regulations, every time their child uses tokens, parents must constantly provide separate approval for each new ride and endure multiple formal contract processes - complete with legal documentation and withdrawal rights. Every family must display what it "really costs" in euros, even though families paid different prices for tokens at different moments. When children win tokens, those displays misleadingly suggest they've won real money. The family's experience becomes a bureaucratic nightmare that ruins the day. The theme park is left with a dwindling number of frustrated and disappointed customers. More importantly, the changes did not simplify the experience - nor did they offer more protections for families.

This is precisely what's being proposed for video games. With the CPC Network Guidelines, every time a player uses an in-game token - which happens millions of times daily and works just like tokens at a theme park - companies would need to treat every such use as a distinct financial transaction requiring extensive legal processes. Meanwhile, a future Digital Fairness Act risks codifying these guidelines into law - ruining the experience for players and families.

Nurturing our thriving video game industry isn't just in Europe's economic interest, but it's also an important driver of culture: More than half of Europeans play games, 45% being women, with an average age over 30. Whether it's commuters squeezing in a game of Candy Crush on the journey home, or grandparents connecting with grandchildren on Hay Day, video games have become part of everyday culture. Hits like Minecraft and Clash of Clans are also Europe's cultural exports - our continent's answer to America's Marvel or Korea's K-pop.

The success of the European games industry is deeply personal to me. 2025 marks Supercell's 15th anniversary. When we started in Helsinki in 2010, few believed a small Finnish company could create category-defining titles, which now have over 5 billion downloads and serve 250 million monthly players across 120+ countries. We're proof that European innovation can compete globally – and there are so many others besides us.

Protecting consumers has been central to this. At Supercell, we put players at the centre of our business. Every decision we make is grounded in our mission to make fun, healthy, safe experiences for players of all ages. For example, our game Brawl Stars disincentivises long play after 45 minutes.

It's also our business interest to create player-friendly experiences. If we don't, we know players will take their time elsewhere.

Research from Ipsos finds that among the 18% of families where children are allowed to make purchases of in-game content, 95% have parental supervision. More than three-quarters of parents report that their children don't spend on video games at all. Average monthly spending has actually decreased 21% in 2024, from the previous year.

Rather than implementing sweeping regulations that would cripple the industry and fail to protect players, we should strengthen existing frameworks already putting European gamers first.

This would mean that the Digital Fairness Act consultation must include genuine industry engagement. As dialogue with the CPC Network progresses, in-game currencies are currently rightfully recognised as digital content under existing law, and should not be classified as "digital representations of value". Most importantly, any new regulations must be based on evidence, not hypothetical assumptions - and be proportionate to the harm.

These aren't distant concerns. The regulations are being decided now - creating uncertainty that threatens investment and innovation today. They're also forcing video game companies that rely on optional purchases of in-game content to look at other business models, like advertising-based revenues, which we know undermines the user experience.

More importantly, these regulations are a question of whether Europe's 6,000 game studios - and the people they employ - can survive.

The decisions made today will determine whether Europe remains a continent where digital industries thrive or becomes a cautionary tale of how good intentions destroy competitive advantage."