ÖIAT Research

The Austrian Institute for Applied Telecommunications (ÖIAT) has been promoting the competent, safe and responsible use of digital media for more than 20 years. Together with our partners, we conduct research on current topics related to the digital world. On this page we provide an overview of past and current research projects.

Consumer Protection in Mobile Gaming


Coordination
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Funding
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Results
Contact

Bernhard Jungwirth
Managing Director
jungwirth@oiat.at
+43-1-595 2112

2023/052024/04
Children & Young People Consumer Protection Online Games

Computer and mobile games are now a major global industry, and smartphones are by far the most popular gaming platform among children and young people. However, digital games are often based on questionable business models. In the study 'Consumer Protection in Mobile Gaming', we take a closer look at these business models.


Computer games („gaming“) have established themselves as an important global economic sector- The increasing success of mobile gaming has been accompanied by a change in business models. Whereas in the past, a one-off purchase price had to be paid to acquire a game, the installation of the game is now usually free of charge (so-called „free-to-play“ games). Monetisation only takes place during the game - mainly via in-app or in-game purchases. To persuade players to make in-game purchases, game manufacturers use manipulative designs and techniques that are often summarised under the term „dark patterns“. Such „dark patterns“ are described, for example, with the keywords „waitto-play“, „playing by appointment“, „artificial scarcity“, „anchoring“, „daily rewards“, „narrative/emotional pressure“ and „randomised content“ (e.g. so-called „loot boxes“). Overall, it is noticeable that a number of problematic and emphatic methods are used in mobile games to entice players to spend as much as possible. This impression is reinforced in particular with regard to the vulnerable target group of children and teenagers.

Because of these developments, mobile gaming is increasingly being focused on by consumer protection. For a long time, the consumer protection debate centred on the phenomenon called „loot boxes“. However, the game tests conducted for the study „Konsumentenschutz im Mobile Gaming” (Consumer Protection in Mobile Gaming) revealed several other problematic business practices in the gaming industry: 

  • No sufficient information regarding costs for free-to-play games
  • manipulating practices while purchasing in-game currency
  • lack of cost transparency during purchases using in-game currency
  • advertising aimed at children
  • simulated gambling and loot boxes
  • manipulation through the use of artificial scarcity and nudging
  • social and algorithm-based dark patterns
  • weak methods for age verification.

These business practices can lead to vulnerable groups such as children or people at risk of gambling addiction into making purchasing decisions that they would not otherwise make. Overall, unfair business practices in mobile gaming are increasingly in the spotlight on the consumer protection agenda. Coordination and expansion of consumer protection activities at European level is therefore recommended (from market monitoring and in-depth analyses to the concrete development of possible legal measures).