Supercell CEO Warns EU Rules Could Smash its Gaming Sector

• Supercell CEO warns EU’s Digital Fairness Act could over-regulate and “cripple” Europe’s €27 billion gaming industry.
• CEO Ikka Paananen argues rules may turn in-game token use into complex financial transactions.
• While supporting consumer protection, he urges evidence-based legislation to preserve innovation and free-to-play models.

Ikka Paananen, CEO of Supercell, has warned that the new European Union (EU) proposals under the Digital Fairness Act (DFA) and Consumer Protection Cooperation (CPC) guidelines could “cripple” Europe’s €27 billion ($31B USD) video game industry.

"The success of the European games industry is deeply personal to me. 2025 marks Supercell's 15th anniversary," Paananen said. “When we started in Helsinki in 2010, few believed a small Finnish company could create category-defining titles, which now have over 5bn downloads and serve 250 million monthly players across 120+ countries.”

The Supercell CEO also highlighted how European innovation can compete globally, according to Paananen. He also pointed out that numerous other gaming businesses are experiencing comparable success as well.

What Did Supercell CEO Warn About?

Ikka Paananen wrote in an open letter titled Let’s not kill one of Europe’s few tech success stories, that the proposed rules may over-regulate the digital gaming economy. This could disrupt gameplay and stifle innovation, while offering limited benefits to consumers.

He argued that the regulations, which are still being finalized, could “torpedo” in-app purchases and digital currencies by turning every act of buying or spending within games into a “bureaucratic nightmare.”

He said, “Every time a player uses an in-game token—which happens millions of times daily and works just like tokens at a theme park—companies would need to treat every such use as a distinct financial transaction requiring extensive legal processes." 

The Supercell CEO says that any change in this process could leave consumers feeling "frustrated and disappointed," since it does not have "repeated cash transactions" and is “convenient and fun” for the consumers.

He further cautioned that a future Digital Fairness Act might negatively impact players' experiences and their families. So, instead of “implementing sweeping regulations” that might destroy the sector and fail to protect users, he advocated for solidifying current frameworks.

Future Pathway

Home to hits like Clash of Clans, The Witcher, and Baldur’s Gate 3, Europe's gaming industry could see an upheaval that could force major changes to free-to-play models. 

Industry leaders, such as Ikka Paananen, the CEO of Supercell, support evidence-based legislation to protect the creative industry. The primary goals of the regulations are to prevent deceptive monetization and manipulative design, particularly in apps intended for children.

Therefore, the regulators must balance consumer protection from now on while preserving the innovation and economic success of this sector.