Earthquake in the video game industry: PlayStation sets a date for the end of the physical format and forces chains like GAME to reinvent themselves

In Spain, there is no specific single license to sell video games only in digital format, but there is a set of legal procedures and obligations that combine taxation, consumer protection, data protection, and intellectual property. A small studio operating from Spain must register as an economic activity, comply with e-commerce and consumer regulations (prior information, withdrawal, warranties), adhere to the GDPR/LOPDGDD if processing personal data, and properly manage VAT, especially if selling to other EU countries. Additionally, it is key to ensure ownership of the game's copyright and use age rating systems such as PEGI, which, although not a law, is the standard accepted by the sector and most platforms. Usually, no specific sectoral administrative registration is required unless the game involves regulated areas such as real money gambling.

1. Activity registration and legal form

The first step is to operate with a valid legal form (self-employed, S.L., cooperative, etc.). Registration with the Tax Agency (form 036/037) is mandatory, choosing an IAE heading linked to software development/publishing or e-commerce, and declaring the start of activity and VAT liability. If sales to other EU countries are expected, it is highly recommended to register in the Intra-Community Operators Registry (ROI) to have an intra-community VAT number. Registration with Social Security (self-employed or company with employees) must also be managed, and if a company is formed, registration in the Mercantile Registry with a public deed and final tax ID is required.

2. Age rating (PEGI)

In Spain, the PEGI system is the standard for age and content classification of video games. There is no specific “PEGI law,” but many child protection regulations take it as a reference, and virtually all major platforms (Steam, PlayStation Store, Xbox, Nintendo eShop, etc.) require a PEGI or equivalent rating to publish. To use official logos and icons, the PEGI procedure (questionnaire and review) must be followed, and it is mandatory to inform consumers of the recommended age and sensitive content (violence, language, gambling, etc.) in the game descriptions.

3. Intellectual property and user licenses

The video game is a complex work (software, art, music, script), and the studio must consolidate ownership of all rights: employment or commission contracts that assign rights over code, graphics, audio, scripts, etc., to the studio. Although not mandatory, registering the program and associated works in the Intellectual Property Registry (state or regional) provides solid proof of authorship and date. It must be ensured that all third-party tools and assets (engines, music, models, fonts) are used under valid licenses, avoiding unauthorized trademarks or characters. For the player, an EULA or terms of use are needed detailing the type of license (usually non-exclusive, personal, and non-transferable), usage restrictions, and liability limitations, always respecting the consumer's non-waivable rights.

4. Data protection and LSSI

If personal data is collected (accounts, email, IP, analytics, forums, newsletters), the GDPR and LOPDGDD apply. It is necessary to identify the data controller, maintain an internal record of processing activities, and publish a clear privacy policy (purposes, legal bases, retention periods, transfers, and user rights). When processing is based on consent (e.g., marketing, advanced profiling), it must be explicit. Any provider processing data on behalf of the studio (hosting, email, analytics, cloud) requires a data processing agreement, and international transfers must be based on an appropriate legal basis. If targeting minors, the minimum age of 14 for consent in information society services must be considered, and parental consent obtained below that age. If selling from a proprietary website, the LSSI requires legal notice, cookie policy, and a valid consent system for non-technical cookies.

5. Consumer protection, e-commerce, and withdrawal

The Consumer Law and LSSI require clear information before purchase about the merchant's identity (name or business name, tax ID, address, and contact), video game characteristics (technical requirements, need for connection, in-app purchases, PEGI age), total price including VAT, functionality and possible restrictions (DRM, regions, third-party accounts), and withdrawal conditions. For digital content not supplied on physical media, the 14-day withdrawal right can be waived if the user expressly consents to immediate download/execution and acknowledges losing that right, which requires a specific acceptance checkbox. Additionally, warranty regulations for digital content apply: the game must conform to what was advertised, and in case of serious faults, the consumer can demand correction (patches), price reduction, or contract termination with refund.

6. VAT and sales in the EU

Sales of digital video games to consumers in Spain are subject to the general VAT rate, which must be charged and declared through the corresponding periodic forms. In B2C sales to other EU countries, downloadable video games are considered electronically supplied services, and generally, the VAT of the consumer's country applies. To manage this without registering in each member state, the One-Stop Shop (OSS) regime exists, allowing VAT to be declared from Spain for the entire EU. For B2B sales to companies with VAT numbers in other EU countries, reverse charge may apply, although for video games for final consumption, the B2C model is usual.

7. Registrations and special cases

In a purely digital activity without a public storefront, opening licenses or specific sectoral registrations are usually not required. Requirements change if the video game includes gambling or real money betting, in which case it falls under regulated gaming, requiring administrative gaming licenses and very strict controls. Additional requirements may appear if virtual wallets with monetary value are managed or if public subsidies requiring registration in cultural or audiovisual registries are accessed. For an independent studio selling “normal” video games via digital download, the core obligations lie in the fiscal, consumer, data, and intellectual property blocks described.

The National Commission on Markets and Competition (CNMC) is not a specific sectoral regulator for video games in Spain, but it does have a relevant role over the ecosystem where games are distributed and monetized: digital platforms, online services, advertising, and competition. Its powers are mainly exercised through three major blocks: competition defense (cartels and abuses), supervision of digital markets and services (DSA/DMA), and consumer protection in online environments. Thus, the CNMC intervenes when a practice related to video games affects the proper functioning of markets or user rights, not on the game’s ludic content itself.

General framework: competition and regulated markets

According to the CNMC’s founding law (BOE-A-2013-5940), the authority has sectoral competences in electronic communications, audiovisual, energy, postal, railway, and airport sectors, but video games do not appear as a specific regulated market. Consequently, the gaming sector is treated as part of the general digital market: the CNMC applies competition defense rules (prohibition of collusive agreements and abuse of dominant position) and merger control when video game companies, distribution platforms, or large tech firms are involved, as summarized in divulgative descriptions of its function (perfi.tel, general entry).

This allows, for example, investigating if a large digital distribution platform imposes anti-competitive conditions on independent studios, or if a merger between a tech “giant” and a major video game publisher significantly reduces competition in the Spanish market.

Supervision of digital services, platforms, and algorithms

In the digital markets domain, the CNMC has been designated National Coordinator of Digital Services (Digital Services Coordinator, DSA) and competent authority for the Digital Markets Act (DMA), as explained by the Government and the agency itself in their communications (Ministry of Economy, CNMC blog). This directly affects:

1. Video game platforms and digital stores. The CNMC can supervise that marketplaces, distribution platforms, or online gaming services comply with transparency obligations regarding recommendation systems, personalized advertising, and content moderation.

2. Algorithms and monetization. Spain promotes a “Digital Fairness Act” type regulation in the EU to limit practices such as manipulative designs (*dark patterns*) or aggressive monetization (e.g., loot box mechanics). In this context, the CNMC could monitor the transparency of algorithms and customizable pricing systems applied in video games, as discussed in this analysis by El Demócrata.

Consumer protection and advertising

The CNMC also intervenes from the consumer protection perspective in digital markets, especially regarding prices, advertising, and contractual conditions. In online gambling, it has evaluated measures to strengthen deposit limits and controls, insisting on assessing their competitive impact (El Demócrata). Such criteria are extrapolable to video games when real money gambling or intensive microtransactions exist.

Likewise, the CNMC monitors misleading advertising practices and designs that push users to uninformed decisions (the mentioned dark patterns) on digital platforms, including gaming-related services, following the line indicated by El Demócrata. Although personal data protection falls under the AEPD, the CNMC focuses on commercial transparency, non-discrimination in pricing, and clarity of information offered to users.

Sanctions and intervention capacity

The CNMC can impose significant fines for infringements of both competition and audiovisual or digital regulations. El Demócrata recalls sanctioning proceedings against large companies and also content creators for failing to comply with the General Audiovisual Communication Law (Ibai Llanos case). In an environment where video games integrate with streaming and audiovisual content, these competences are relevant for studios, platforms, and influencers linked to gaming.

Limits and challenges in the video game sector

Despite this broad role in digital markets, the CNMC does not regulate video game content (violence, age rating, etc.) nor is there a specific “video game law” whose application corresponds to it; its intervention is limited to the economic and market dimension. Moreover, as highlighted by El Demócrata, the full operability of its new digital functions has suffered legislative delays in Congress, which has hindered part of its supervisory capacity over networks and large platforms.

Parliamentary reports and recent hearings in the Economy, Trade, and Digital Transformation Commission (Session Diary) also emphasize the need for technical and human resources to control markets as complex and opaque as digital ones.

In summary, the CNMC supervises the video game sector indirectly: through competition defense, monitoring of platforms and digital services, and consumer protection against unfair commercial practices, but without exclusive sectoral competence over video games as a cultural product.

The latest general elections in Spain were held on July 23, 2023, resulting in a seat victory for the PP (137) over the PSOE (121), with no bloc reaching the absolute majority of 176 deputies. Vox obtained 33 seats and Sumar 31, while the rest were distributed among nationalist and regionalist forces. Regarding digital regulation, the current government (PSOE–Sumar, with parliamentary support from other groups) promotes a more interventionist model and protection of digital rights, while PP and Vox advocate a more market freedom-oriented approach and seek to limit what they consider censorship risks. This balance of forces means that any major digital reform (DSA, AI, platform supervision, disinformation, or digital taxation) requires agreements and often results in blockages or heavily negotiated regulations.

Results of the 2023 general elections

According to official data from the Ministry of the Interior, disseminated and systematized by media such as RTVE and historical result reports like those collected in Infoelectoral and summary entries, the seat distribution in the Congress in the July 23, 2023 elections was as follows:

PP (People's Party): 137 seats, with around 33.1% of the votes (RTVE).
PSOE: 121 seats, with about 31.7% of the votes.
Vox: 33 seats, close to 12.4% of the votes.
Sumar: 31 seats, around 12.3% of the votes.
ERC: 7 seats.
Junts: 7 seats.
EH Bildu: 2 seats.
Other parties (PNV, BNG, CC, etc.) complete the Chamber.

PP and PSOE thus consolidate as major parties, both by vote and seats, while Vox and Sumar are the main swing forces to the right and left, respectively. The lack of an absolute majority forced an investiture based on agreements between PSOE, Sumar, and several nationalist parties, in line with post-electoral scenario analyses collected in leading press and comparative repositories such as general results annexes.

Digital regulation frameworks at stake

The parties' influence is mainly articulated around the application in Spain of the Digital Services Act (DSA), the Digital Markets Act (DMA), the GDPR, the upcoming European AI regulation, and national rules on disinformation, child protection, and digital taxation. The European Commission summarizes these policies on its page about EU digital policies in Spain, while analyses such as those from the Elcano Royal Institute on disinformation and sectoral essays by companies like Telefónica (essay collection) explain the political and economic context.

Weight and position of the major parties

PSOE and Sumar (governing bloc)

As the main left-wing force and the president's party, the PSOE has led the adaptation of the DSA and DMA into Spanish law, promoting the CNMC as coordinator of digital services and social network supervisor, and advocating a strong response against disinformation and child protection. Party documents and debates covered by the press and the Bar Association about the DSA's entry into force, such as the European political agreement on the DSA or specialized analyses (legal comments on the Regulation), show the socialists' alignment with Brussels' regulatory agenda.

The coalition with Sumar reinforces a high interventionist approach: advocating strong digital taxation on large platforms (“digital services tax”), demanding algorithmic transparency, and supporting specific rules against disinformation and for protecting workers and users against AI. According to analyses on digital policies and technological sovereignty, such as those promoted by sector platforms (DigitalES) and academic reflection documents (Fedea, ICE Journal), the governing bloc is at the European forefront in data sovereignty, platform control, and digital rights protection.

PP and Vox (main opposition)

The PP, as the party with the most seats but outside the Government, has significant blocking or conditional capacity in Congress and the Senate. In practice, it supports the European framework (DSA, DMA, GDPR) but criticizes what it sees as “overregulation” or expansions of competences without guarantees, demanding regulatory stability and legal certainty to avoid hindering innovation, as reflected in parliamentary interventions and sector debates recorded in Congress (Session Diaries) and business platforms (DigitalES).

Vox, with 33 seats, especially influences the right-wing bloc and public debates on freedom of expression and state control. Its interventions in Congress, collected in documents like Plenary Diaries, show rejection of projects perceived as a “Ministry of Truth,” defense of minimal intervention on social media content, and criticism of new digital tax figures.

Other parties with their own group

Parties like ERC, Junts, or PNV are not majorities in seats but are decisive for approving government digital laws. ERC is favorable to greater algorithmic transparency and platform control but is very critical of any recentralization that might affect regional competences, as reflected in parliamentary debates on digital regulation and linguistic rights (Session Diary). The PNV, meanwhile, combines general support for the European framework with strong defense of State–community co-governance in child digital protection and infrastructure deployment.

Final balance

In summary, the power distribution resulting from July 23, 2023, translates into digital regulation marked by the government's regulatory push (PSOE–Sumar), counterbalanced by PP and Vox's demands on freedom of expression and regulatory stability, and the swing role of nationalist parties concerned with decentralization and linguistic rights. This makes Spain one of the most active countries in developing the European framework (DSA, DMA, AI, GDPR) but also one of the most politically polarized around disinformation, the role of platforms, and digital taxation, as comparative analyses on the country's digital leadership in reports like DESI (datos.gob.es) and studies on Spain's role in a fragmented EU (The Diplomat in Spain) show.