EGDF calls for EU regulation on non-negotiable contracts in wake of Unity backlash

gamesindustry.biz:

The European Games Developer Federation has voiced its concerns over Unity's Runtime Fee, talking about "looming game engine market failure."

The EGDF published a statement on its website on Thursday, describing Unity's change as "unfortunate," adding that with these "sudden and drastic changes" the engine firm has "significantly damaged its reputation as a reliable and predictable business partner."

It's likened the move to "anti-competitive market behaviour" that "must be carefully monitored, and, if required, the European competition authorities must step in."

"The new install fees will limit game developers’ freedom to conduct business as it pushes them to implement Unity ad-based business models even in games that otherwise would not have ad-based monetisation," the EGDF wrote. "Furthermore, this will create a competitive disadvantage for those game distribution platforms that do not use ad-based monetisation at all (e.g. subscription services and pay-per-download games), as Unity is de facto forcing them to increase their consumer fees compared to channels that allow the use of Unity’s ad-based monetisation tools."

It continued: "Install fees will lead to markets where game developers want to limit the downloads and try to avoid installs from the wrong players. This can potentially kill part of the game market. For example, indie developers that have an unfortunate mix of being a success on the number of installs but that are struggling to generate revenue, or hyper-casual game studios based on combining a huge install base with minuscule revenue generated per game."

The EGDF called for a new regulatory framework at the EU level "for unfair, non-negotiable B2B contract terms," and for further R&D support for