What does the first German-language loot box ruling mean?
An Austrian verdict that shan't be appealed by Sony could have huge ramifications.
In February, the District Court of Stadt Hermagor in Kärnten, Austria, ruled that FIFA Ultimate team packs were a form of gambling. The decision to classify FIFA Ultimate Team packs, and thus ‘cards’ or ‘players’ as gambling products came with the reason that secondary markets exist whereby the product can be exchanged for monetary value.
From my previous substack (Lootbox regulation’s coming: esports beware), I mentioned an example of the Netherlands and the Gambling Commission (KSA). EA were fined, but per appeal they were then excused of the fine by the government despite gambling regulator enforcement (Source).
Gamesmarkt.de has reported that the judgement in the aforementioned Austrian case has been final since April 3, 2023. The judgement is simply that Sony has reimbursed the complainant 336.26 euros spent on FIFA loot boxes.
The interesting facets here are:
The complaint was brought against Sony, and not EA as the purchase was completed on the PlayStation, and therefore Sony Interactive Entertainment was the contractual partner.
Sony decided not to appeal the judgement, with the spokesperson for the court telling Gamesmarkt “the defendant’s representative has not lodged an appeal”.
The judgement is on this individual case only.
While the judgement is on an individual case, the ramifications could be overwhelmingly damaging for Sony, and perhaps EA down the line. First, it would take a brave man to argue that Sony are the company undertaking predatory practice and providing a ‘dangerous product’, although facilitating the purchase certainly plays some part in it.
Secondly, if this sets precedent in Austria, there could be huge numbers of appeals from anyone in Austria that has ever purchased a FUT pack demanding a refund.
Lastly, given this is the first German-language and legally-binding judgement on loot boxes, it’s more than likely that scrupulous regulators in other German speaking territories will be taking a long look at this and what it could mean for their own regulation, and market.