It was four years in the making but at the end of January 2020 the United Kingdom officially left the European Union. A number of questions now exist speculating what the aftermath of Brexit will be; how the economy will react, how businesses will adapt and how immigration will change the UK’s existing multicultural demographic.
There are also questions about the proposed timetable of the completion of Brexit. The UK is in a transition era and is continuing with existing trade and legal agreements. It still has to agree a trade deal with the EU and the UK PM, Boris Johnson has insisted there is a hard stop for the end of 2020. If there is no deal then the UK will revert to World Trading Organisation (WTO) rules. In the light of the Coronavirus crisis there is some doubt in the EU that talks can be completed in time.
Brexit is sure to create some significant changes in many industries, but how exactly will it affect the mobile gaming industry? In an industry that is fundamentally digital based, is it possible that Brexit will have no impact on the way games are developed and published? Or will it’s impacts be felt by players both large and small?
In this article we’ll explore the various potential effects of Brexit, what to expect and how studios and publishers can adapt in these changing times.
What does Brexit mean for GDPR?
In 2018 the GDPR (General Data Protection Regulation) came into effect and required thousands of businesses operating in the EU to ensure their user data collection & processing met GDPR standards. The regulation was created to allow for more transparency in the digital environment, so that both users and businesses understood how their personal data was being collected and used by companies.
Now that the UK is no longer in the European Union, what does this mean for developers and publishers looking to release titles in the UK and the EU respectively?
Since the UK is technically no longer a part of the EU, theoretically this would mean that it is no longer legally required to abide by the GDPR if conducting business within the UK. However if UK publishers or businesses wish to conduct business in the EU, they will need to abide by GDPR for these EU users.
“Brexit doesn’t exclude UK businesses from GDPR if they still wish to operate within the EU.”
So in reality, Brexit doesn’t exclude UK businesses from GDPR if they still wish to operate within the EU. Put simply, if the UK is no longer a member of the EU, they will need to abide by the same GDPR regulations followed by any other non-EU country. For foreign companies wishing to operate solely in the UK, it is expected that they will not be required to follow the GDPR. However, they will have to abide by the regulations set out in the UK's Data Protection Act, or an updated version of this.
Will App Store Revenues & Taxes change?
In 2017 when the result of the referendum for Brexit was announced, the pound’s value depreciated, causing Apple to announce that there would be a 25% increase in prices on the UK Appstore.Even without the impact of Covid-19 it was predicted by economists and the media that over the next twelve months, the pound’s value would fall as the British economy finds its feet outside the EU.
As a result, it is safe to assume that there could be price changes within the Appstore to reflect the current exchange rates.
In saying this however, it’s unlikely that Brexit will cause any changes in the current profit share set by the Appstore or Google Play Store. Both app stores currently charge a fee of approximately 30% of total profits and this fee is applied globally regardless of country or currency. It therefore shouldn’t make any difference whether or not the UK is no longer a part of the EU, as the fee doesn’t discriminate based on country.
Immigration & Working Overseas
One of the most important changes to come out of Brexit will be the UK’s immigration process. Since mobile game development and publishing is such a global industry, changes to immigration in the UK could have a huge impact on studios hiring overseas talent or developers having the chance to work overseas.
When the transition period ends on the 1st of January 2021, EU Nationals looking to enter or work in the UK will have to undergo the same immigration and VISA procedures as a Non-EU National.
“Changes to immigration in the UK could have a huge impact on studios hiring overseas talent or developers having the chance to work overseas.”
The UK’s home office is set to implement an Australian based point system for immigration, which is estimated to cut approximately 90,000 unskilled workers coming to the UK every year. Skilled workers applying for a Work VISA will require a job offer with a salary of no less than ￡26,500 with some exceptions depending on personal backgrounds and worker shortages in a particular industry.
So while it is not impossible to work in the UK under the new Immigration laws, it will mean that there will be many more hoops for employers and employees alike to jump through. It then raises the question of whether or not remote work will become an increasingly bigger method of work for many in the mobile gaming industry. More importantly it could create a bigger need for digital platforms similar to Coda, that automate processes allowing smaller studios to create games in their country and make revenue without working overseas.
The UK’s home office is set to implement an Australian based point system for immigration, which is estimated to cut approximately 90,000 unskilled workers coming to the UK every year. Skilled workers applying for a Work VISA will require a job offer with a salary of no less than ￡26,500 with some exceptions depending on personal backgrounds and worker shortages in a particular industry.
So while it is not impossible to work in the UK under the new immigration laws, it will mean that there will be many more hoops for employers and employees alike to jump through. It then raises the question of whether or not remote work will become an increasingly bigger method of work for many in the mobile gaming industry. More importantly it could create a bigger need for digital platforms similar to Coda, that automate processes allowing smaller studios to create games in their country and make revenue without working overseas.
Where to from here?
So when could we start to see these changes in effect? For now, the EU and UK continue to work together to define what their new foreign relationship will be. This transition period is set to end on December 31st 2020, meaning that for the next 11 months the UK will continue to abide by the laws and regulations set by the European Union for its members.
While we may not see immediate changes to the industry, it’s important to spark conversation about this topic and to prepare for potential outcomes and changes to publishing globally.
What are your thoughts? Do you believe that Brexit will be a game changer or will it in fact, have no effect on the mobile gaming industry at all? We’d love to hear your thoughts!
