The enforcement of the EU’s Digital Markets Act (DMA) has finally arrived, prompting questions about its effectiveness. Is anything truly changing? And are there new risks to navigate or opportunities to seize?
In this guest article, Jens Lauritzson, CEO of Flexion, explores the direct impact of the act and evaluates the potential opportunities in Europe for game developers and publishers operating under its regulations.
The Digital Markets Act (DMA) is now in effect across the EU as of Thursday, March 7, 2024, leading many game developers to question the significance of the changes. However, there are opportunities on the horizon, and game publishers should be prepared to adapt swiftly.
Many developers find the fees imposed by Apple and Google for using the App Store or Google Play to distribute and market games to be unreasonable. Some argue that these tech giants have exploited their dominant positions for years. The regulatory actions taken by European authorities with the DMA, as well as the legal battles pursued by Epic in the US, have been closely monitored in hopes of securing a fairer revenue share for developers.
Apple’s response to the DMA has sparked controversy, as they have decreased their fees and allowed the use of alternative payment platforms. However, the additional charges imposed by Apple may still amount to almost 30% of revenue, which may deter some developers from making the necessary changes. Despite the challenges, the evolving landscape presents opportunities for innovation and market diversity.
While the market transformation may not be immediate, there is a potential for a more varied market in the near future. Flexion has been actively involved in enabling developers to access alternative app stores for years, tapping into a vast audience of gamers beyond the traditional platforms. By leveraging technology and marketing support, developers can explore new revenue streams with minimal upfront costs.
As the gaming industry moves towards greater market diversification, developers will need to manage their games across multiple platforms. Partnering with specialized service providers, like Flexion, can streamline market management and marketing efforts, allowing developers to focus on game development.
Venturing into alternative markets early on can provide valuable insights and establish a strong position for the future. Rather than solely focusing on cost reduction, developers should prioritize user engagement and brand loyalty. The newfound flexibility offered by Apple and Google presents an opportunity to build stronger connections with users and innovate based on their feedback.
Cross-platform compatibility remains a key issue in gaming, particularly as diverse markets open up. Ultimately, success in the gaming industry lies in creating compelling content and owning intellectual property. This period of change should be viewed as an opportunity for innovation and exploration, rather than a time to dwell on the challenges posed by tech giants.
