Epic Games has lost its appeal of a fine issued by the Netherlands Authority for Consumers and Markets (ACM) related to manipulative practices within the popular online game, Fortnite. The over 1.1 million euro penalty stems from the ACM’s determination that the game unlawfully encouraged in-game purchases by children [[1]]. This ruling highlights increasing scrutiny of in-game monetization tactics, especially those targeting young players, and may set a precedent for similar cases across Europe.
Epic Games, the creator of the globally popular online game Fortnite, will be required to pay a fine previously levied by the Netherlands Authority for Consumers and Markets (ACM), a court has ruled.
The fine, exceeding 1.1 million euros, stems from the ACM’s finding that Fortnite employed manipulative practices to encourage in-game purchases from children. Epic Games initially appealed the decision in court last year.
While Fortnite is free to play, Epic Games generates revenue through the sale of virtual items, such as character outfits and dance moves. The game boasts hundreds of millions of players worldwide, and these in-game purchases contribute billions of dollars in annual revenue for the company. The success of Fortnite helped pioneer the “free-to-play” model with in-app purchases that now dominates the mobile gaming landscape.
The court sided with the ACM, agreeing that advertising within the game directly prompted children to make purchases. Specifically, the court found that the game intentionally created a sense of scarcity in its online store, pressuring children to make quick buying decisions.
Epic Games had previously removed a timer that displayed how long a virtual item would remain available for purchase, following similar concerns raised by the ACM. The company did not appeal the fine associated with that specific removal.
