The European Commission may call upon tech giants including Apple and Google to discuss and tackle in-app purchases issue.
After receiving complaints from all over the EU including consumer groups in the U.K., Denmark, Italy and Belgium, the EU has decided to hold talks with companies within the industry, policymakers and consumer protection authorities as it is looking to tighten up regulations, especially when it comes to ‘misleading’ advertising.
The European Commission may go for declaring clearer guidelines and regulations once they are over with the talks.
The problem arises when some misleading advertisements of “free to download” apps are posted within the iOS app or Play stores. Such apps may not necessarily be “free to play”.
After these apps are downloaded in-app purchase bills result in an unwanted shock for parents who have given their children access to smartphones or tablets.
One such example is of an 8-year-old British girl who while making in-app purchases through games ran up a bill of around $6,700.
Viviane Reding, EU’s justice commissioner, said: “Misleading consumers is clearly the wrong business model and also goes against the spirit of EU rules on consumer protection.”
“The European Commission will expect very concrete answers from the app industry to the concerns raised by citizens and national consumer organisations.”
As per the European Commission, more than half of online games in the E.U. are displayed as free, yet are bundled up with hidden charges. With the online games market expected to grow up to $86 billion within the next five years, the EU Ministers have already suggested that they will ban the term ‘free-to-play’ unless the game really is completely free.
[Source: GamesIndustry]