2025: A Year of Significant Legal Shifts in the Gaming Industry

The year 2025 was marked by a plethora of legal stories that garnered significant attention in the gaming industry, rivaling that of the games themselves. Notable examples include patent disputes over game mechanics, public disagreements regarding earn-out payments, and the transformation of the mobile ecosystem. These developments are not merely newsworthy; they have the potential to profoundly reshape the way games are created, monetized, and played. This analysis will delve into some of these issues and their potential evolution in the forthcoming year. Mobile developers have faced numerous challenges in recent years, including the introduction of IDFA, jurisdictional crackdowns, and increased user acquisition costs. However, the emergence of the mobile ecosystem, driven by new European competition regulations and Epic's lawsuits against Apple and Google, presents a promising opportunity. In April 2025, the European Commission imposed a fine of €500m on Apple for non-compliance with the 'anti-steering' provisions of the Digital Markets Act, which mandates that developers be allowed to inform customers of alternative offers outside app stores without incurring charges. The UK's Competition and Markets Authority declared Apple and Google as having 'strategic market status,' enabling the CMA to implement targeted interventions to ensure mobile platforms are open to effective competition. Epic's disputes with Apple and Google are complex, with varying degrees of success in different cases, and some aspects remain under appeal. These developments will have significant implications for developers and players. The proliferation of third-party app stores will enable players to access apps that may have been unavailable on traditional app stores due to non-compliance with platform guidelines. This could be particularly appealing to certain sectors of the gaming industry, such as web3 and blockchain businesses. Developers and players may also experience cost savings on in-app purchases due to new platform fee structures and alternative payment processors. The continued growth of web stores, which facilitate direct-to-consumer transactions, will also be a notable trend. However, these new opportunities will also bring increased compliance complexity, with many changes likely to be region-locked, resulting in a fragmented user experience for players worldwide. The European Union has been actively regulating the video game sector throughout 2025, with reports from BEUC, the Digital Fairness Fitness Check, and the Consumer Protection Co-operation Networks. These developments pose a threat to the free-to-play industry, potentially leading to significant changes in the way games offer virtual currency. The concept of 'transparent' personalized data usage for monetization is also being reevaluated, with potential additional transparency and fairness requirements under consumer law. Engagement practices, including those that can contribute to 'digital addiction,' are also being scrutinized. The impact assessment on digital fairness is expected to be released in Q2 2026, with a proposal for the Digital Fairness Act legislation in Q4 2026. The Brazilian Ministry of Justice has updated its video game age rating criteria to account for new parameters, including in-game purchases and 'algorithmic manipulation.' The UK's Department of Science, Innovation, and Technology will also conduct an inquiry into the addictive use of technology and its impact on children's development. Online safety has been a prominent concern in 2025, with the roll-out of several new pieces of legislation and many more in the works globally. The UK's Online Safety Act has come into force, with initial enforcement focusing on pornography and other serious harms. The EU's Digital Services Act has published guidelines for the protection of minors, including measures to counter perceived consumer, privacy, and security risks. US State laws have begun to appear, targeting age assurance measures, and the Kids Online Safety Act has been reintroduced to the senate, including 'online video games' in its scope. Games studios operating in the multiplayer and user-generated content space must be aware of the changing online safety landscape. Generative AI tools have made significant progress, with nearly 90% of developers already using the technology in their game development workflows. However, unresolved legal issues, such as copyright protection and user data safety, remain. Players, particularly those on PC and console, remain critical of AI adoption, while mobile players have been more accepting. The legal landscape will continue to evolve in 2026, with the games industry attracting increased attention from regulators. Although legal developments often pose challenges, they also present opportunities for developers to adapt and thrive in a dynamic and varied industry.