EU DIGITAL SERVICES LEGISLATION
Liability and accountability Under the DSA, the liability framework for online platforms has been redefined. Gaming companies are now held accountable for the content disseminated on their platforms, necessitating swift action against illegal material upon awareness. Failure to comply can result in substantial penalties, including fines of up to six percent of global revenue. This shift underscores the importance for gaming platforms to establish comprehensive compliance strategies and collaborate closely with legal experts to navigate the evolving regulatory landscape. The DSA introduces rigorous transparency requirements, compelling platforms to disclose their content moderation policies and practices. This includes publishing annual transparency reports detailing the number of content removal actions, the rationale behind these decisions, and the measures taken to inform users. Such transparency fosters trust between users and platforms, ensuring that moderation practices are fair and accountable. Additionally, platforms must provide clear explanations to users when actions are taken against them, offering avenues for appeal and ensuring that users understand the reasons behind moderation decisions. This requirement necessitates the development of user-friendly communication channels and support systems to handle disputes effectively.
out mechanism from targeted advertising, aligning with broader privacy protections under the GDPR. The DSA bans personalized advertising targeted at minors, requiring gaming companies to adopt age-verification mechanisms to prevent data collection from underage users. Furthermore, the regulation forces a shift toward contextual advertising, where ads are displayed based on game content rather than user profiling. In response to EU regulatory pressure, Google Play revised its advertising policies, introducing child-directed services that limit the use of behavioral tracking for users under 18. This forced game developers to rethink ad placement and rely more on non-personalized ad revenue models. Implications of the DSA for gaming companies outside the EU One of the most significant aspects of the DSA is its extraterritorial application. Gaming companies based outside the EU must comply with the DSA if they offer services to European users or have a significant number of players within the EU market. Non-EU gaming platforms that reach a certain user threshold in Europe must appoint a legal representative in the EU.They must adhere to content moderation, transparency, and data protection requirements.
Data privacy, sharing, and user consent (Data Act & DGA)
Impact on business models and advertising
New digital regulation of the EU also includes the Data Act and the Data Governance Act (DGA), which expand upon the GDPR by regulating how companies access, share, and store data. In the gaming industry, these laws introduce new compliance requirements related to data portability and user control. The Data Act mandates that users have increased control over their in-game data, allowing them to transfer their data across different platforms. Companies must facilitate equitable data sharing mechanisms, ensuring that game developers, publishers, and third parties adhere to strict ethical and legal frameworks when using player data. The DGA establishes rules for data intermediaries, ensuring that game-
The DSA’s restrictions on targeted advertising, particularly concerning minors, have significant implications for companies that rely on ad-based revenue models. Platforms must reassess their advertising strategies to ensure compliance, potentially shifting towards contextual advertising methods that do not exploit personal data. This transition may affect revenue streams but aligns with the broader goal of protecting user privacy. Gaming platforms must clearly disclose how advertisements are targeted, the data sources used, and the logic behind ad delivery. Platforms must offer users an opt-
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IMGL MAGAZINE | MARCH 2025
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