European Games Developer Federation Calls for EU Regulation Amid Unity Backlash

The European Games Developer Federation has expressed deep concerns over Unity's introduction of a Runtime Fee, warning of a potential "game engine market failure". In a statement published on its website, the EGDF described the move as "regrettable" and argued that Unity has "substantially damaged its reputation as a reliable business partner" with these sudden changes. The trade body likened Unity's actions to "anti-competitive market behavior" that warrants close monitoring and potential intervention from European competition authorities. The EGDF asserted that the new fee structure will restrict game developers' ability to conduct business freely, as it pushes them towards implementing Unity's ad-based models even in games that would not otherwise use such monetization. This, in turn, will create a competitive disadvantage for distribution platforms that do not rely on ad-based revenue models, as Unity is effectively forcing them to increase consumer fees compared to channels that utilize Unity's ad-based tools. The Federation warned that the install fees could lead to a scenario where game developers aim to limit downloads and avoid installs from less desirable players, potentially harming a segment of the game market, particularly affecting indie developers and hyper-casual game studios. The EGDF is advocating for a new EU regulatory framework to address unfair, non-negotiable B2B contract terms and is seeking additional R&D support for the European games industry. The proposed regulation should provide a reasonable timeframe, such as six months, for markets to adapt to significant changes in non-negotiable terms and conditions, and should ban retroactive pricing and contract changes to bring much-needed market certainty. The Federation emphasized that Unity's new pricing structure will disproportionately affect small to medium-sized developers and will have broader implications for the game industry ecosystem, including games education. Many professional game education institutions have built their curricula around the Unity game engine, and a potential mass exodus from Unity could lead to rapid changes in game education, placing young industry professionals in a difficult position. Unity's announcement to charge developers for every game install past a certain threshold from January 2024 has been met with widespread criticism, prompting the company to reconsider its policy, although the specifics of the changes remain unclear.