Is Apple responsible for illegal loot boxes?
Belgium recently brought a case before the Court of Justice of the European Union (CJEU), raising a crucial question about Apple’s liability. The case centres on whether Apple’s App Store platform can be held liable for hosting games featuring loot boxes, which are considered illegal gambling in Belgium. This request comes after a Belgian player, Mr Ls, spent more than €67,000 on loot boxes in a mobile game, Top War: Battle Game, accessible via the App Store.
The starting point: one player, one massive spend
Between January and November 2021, a Belgian consumer accumulated a large debt by buying loot boxes in a mobile game. These random purchases allowed him to receive virtual items in the game, but also raised concerns. Under Belgian law, loot boxes, which rely on chance to award rewards, are considered to be games of chance. Regulating them requires an operator’s licence, which seems to have been omitted in the case of games accessible on Apple’s App Store.
Mr Ls has therefore decided to lodge a complaint against Apple, arguing that the platform should not authorise the distribution of games that violate Belgian gambling legislation. He is seeking damages from the American company. However, Apple is defending its position on the basis of the European directive on electronic commerce, which grants it protection as a mere hosting provider, with no responsibility for the content of the applications offered.
The European directive and Apple’s protection
The central legal issue revolves around the interpretation of the EU E-Commerce Directive, adopted in 2000. This directive stipulates that information society service providers, such as Apple, are not responsible for content hosted at the request of users. However, Apple’s defence is based on the idea that gambling activities are excluded from this protection. Mr Ls’ lawyers disputed this interpretation, arguing that gambling activities, including loot boxes, should be treated separately under European law.
In response to this problem, the Antwerp court has decided to submit several questions to the CJEU. The questions relate in particular to the definition of gambling activities under the Directive and the liability of download platforms, such as the App Store, for the games offered.
A wider issue: the impact on the Digital Services Act
This case could also have implications for the Digital Services Act (DSA), which will be adopted in 2022 to replace the E-Commerce Directive. The DSA amends and extends the principles of liability for digital platforms. Platforms such as the App Store are now required to play a more proactive role in managing the content they host.
Specialist lawyer Guillaume de Villegas pointed out that the European Commission appears to consider that digital games offered on platforms such as the App Store are ‘information’, which could in theory protect Apple from liability under the provisions of the DSA. However, if the CJEU responds differently and confirms that loot boxes are games of chance, this could call into question this legal protection and have consequences for the implementation of the DSA.
Belgium’s position: strict regulation to protect players
The case raises wider questions about the regulation of loot boxes and mobile games in general. In 2018, Belgium passed strict legislation to regulate gambling, banning games with unregulated loot box mechanisms. In 2023, several other European countries, including the UK, introduced similar directives. The aim is to protect gamblers, particularly young people, from the risks of addiction and overspending.
Belgium has already taken action against certain games, describing them as breaches of gambling laws. The current case could therefore have repercussions beyond Apple’s specific case, potentially affecting other mobile game hosting platforms.
A decision that could transform the regulation of digital platforms
The Apple case could mark a turning point in the regulation of loot boxes and digital platforms in Europe. Through its answers to the questions raised by the Antwerp court, the CJEU could not only clarify the liability of major platforms such as the App Store, but also set a precedent for the future regulation of online gambling.
The stakes are high, both for players and for businesses. If the CJEU excludes loot boxes from the protection of the E-Commerce Directive, it could prompt other countries to review their regulations and introduce stricter controls. Belgium, in particular, continues to push for tougher rules to protect consumers in this fast-growing field.