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Spain eyes crackdown on video game ‘loot boxes’

Spain's government will within days present a draft bill to regulate video game "loot boxes" for which users must pay, a minister said Friday, warning of the addiction risks for youngsters.

video games
Spain wants to regulate video gaming. Photo: Sam Pak / Unsplash

An increasingly common feature in many video games, “loot boxes” are caches of virtual weapons and equipment which a player can buy to increase their prowess or status within the game.

But not all boxes contain useful tools and gamers can only see what’s
inside after paying, prompting widespread criticism for encouraging behaviour similar to that associated with gambling.

“We have drawn up a very specific law which we will present in the coming days” that will regulate the sale of such content, Spain’s Consumer Affairs Minister Alberto Garzon told Radiocable.

“It is like gambling… because it involves compulsive consumption
behaviour which provokes a series of issues for players, from stress to
financial bankruptcy,” he told the independent radio station.

“At the end of the day, these are sums which pile up and can lead to
gambling addiction,” Garzon said.

Such features were aimed above all “at the under-18 age group, where in
2021, up to 30 percent admitted they had paid significant amounts of money to obtain such rewards” within a game, he said, citing health ministry statistics.

The age ratings for such games “don’t take into account the danger posed by this feature, so parents could buy a game for a 13-year-old, for example, without being aware it includes an element which, in real life, could not be bought by anyone under 18,” he explained.

‘Predatory’

In April, PEGI, the European body that issues age ratings for video games, introduced a labelling change that requires gaming companies to say if a game includes “paid random items” – a form of optional in-game purchases.

Many other countries have also been struggling with the controversial
question of “loot boxes” although few have taken steps to regulate them.

On June 2nd, 20 European consumer groups threw their weight behind a
Norwegian Consumer Council (NCC) report on loot boxes that described them as “exploitative and predatory”, with the groups demanding better regulation of the video game industry.

“The sale and presentation of loot boxes often involve exploiting consumers through predatory mechanisms, fostering addiction, targeting vulnerable consumer groups and more,” the NCC’s head of digital policy Finn Myrstad said in a statement.

Gaming companies often used “highly problematic practises to increase their own revenue” through features that “manipulate consumers to spend large sums of money through aggressive marketing, exploitation of cognitive biases, and misleading probabilities”, the report found.

In Europe, only Belgium and the Netherlands have banned loot boxes after directly associating them with gambling.

In a statement issued in response to the government’s move, the Spanish
Association of Video Games (AEVI) said it “rejects any association with
gambling” and insisted on the sector’s right to “self-regulation”.

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WORKING IN SPAIN

Amazon to create 17,500 new jobs in Spain

Amazon's cloud computing division AWS will invest €15.7 billion ($17 billion) in data centres in Spain's north eastern Aragón region through to 2033, the US tech giant said Wednesday.

Amazon to create 17,500 new jobs in Spain

The investment will create around 17,500 indirect jobs in local companies and contribute €21.6 billion to Spain’s gross domestic product during the period, Amazon said in a statement.

An estimated 6,800 of these new jobs will be created in the region of Aragón, where the city of Zaragoza is located.

“This new commitment by AWS spotlights our country’s attractiveness as a strategic tech hub in southern Europe, “Spanish Digital Transformation Minister Jose Luis Escrivá was quoted by Amazon in the statement.

READ ALSO: Meta, IBM, Google, Amazon – How thousands of tech jobs are being created in Spain

The head of the regional government of Aragón, Jorge Azcón, said in a message posted on social network X that this “is the biggest economic investment in the history of our region”.

AWS Spain and Portugal country manager Suzana Curic said that “Aragón was always our winning horse when we were evaluating where to locate our region and our data centres. The availability of land, access to sustainable energy sources, a solid and consolidated business fabric, local talent and the enormous growth potential, were the main reasons why we should be here.”

A pioneer of e-commerce, Amazon’s AWS also dominates cloud computing with 31 percent of the market at the end of 2023, according to Stocklytics.

But rivals Microsoft and Google are gaining ground, with 24 percent and 11 percent market share of the cloud business, respectively.

The race has become particularly heated since the deployment of ChatGPT-style artificial intelligence that the cloud companies are offering to clients.

READ ALSO: Google opens biggest European cyber centre in Spain’s Málaga

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