AI, Online Platforms, and Loot Boxes: Key Legal Trends to Watch in 2024

A year ago, predictions were made regarding legal trends for 2023. Now, it is time to review these predictions, assess their accuracy, and provide new insights for 2024. Over a dozen topics will be examined, including the increasing importance of artificial intelligence in legal discussions, particularly in relation to copyright law. The use of AI tools like ChatGPT and DALL-E is becoming more prevalent, raising questions about ownership and protection of AI-generated content. In 2023, AI was widely used by game companies for creating IP assets, and several lawsuits were filed regarding the protectability of AI output. The EU institutions have reached a political agreement on the AI Act, which will introduce layered obligations based on the risk associated with AI. In 2024, the discussion may shift to AI-created game code and databases, and game companies will continue to explore new use cases for AI. The forthcoming AI Act will be critical in regulating emotional recognition and social scoring systems, which may be subject to bans. The Digital Services Act will impose new requirements on online platforms, including refraining from dark patterns and providing users with explanations for bans. The EU Commission has designated very large online platforms, and games companies will need to navigate multiple layers of obligations to become DSA compliant. The Metaverse did not seem to be a major issue in 2023, but new platform regulations may become a challenge when it resurfaces. Many investors in tokenized gaming have lost money, and tokenized games may need to find a new audience to be successful. The loot box discussion will continue, with potential bans and sanctions for game operators. The Digital Markets Act aims to limit the market power of gatekeepers, and the Microsoft/Activision Blizzard case may have a significant impact on the definition of relevant markets in the games sector. Online games and free-to-play games companies will need to watch new developments closely, as they rely on mechanics that keep users engaged. The EU-US Data Privacy Framework has made data transfer to the US easier, and games companies will need to keep up their efforts to comply with regulations. Match-fixing and cheating will remain important issues in esports, and there may be discussions on the principal legal admissibility of esports betting. The EU will introduce new regulations, including the Data Act, AI Act, Cyber Resilience Act, and Child Sexual Abuse Regulation, which may create challenges for companies to comply with all regulations.