The actual issue is "Often consumers are not fully aware that they are spending money because their credit cards get charged by default." - so it's not an issue of people disliking paywalls in free games, it's an issue of people not realizing they're handing over real cash in games which are marked free.
The EU also has't said they want Free/IAP games to not be marked as free, but what they said is 'Games advertised as “free” should not mislead consumers about the true costs involved' (i.e IAP should be made more explicit).
http://europa.eu/rapid/press-release_IP-14-187_en.htm?locale...
The actual issue is "Often consumers are not fully aware that they are spending money because their credit cards get charged by default." - so it's not an issue of people disliking paywalls in free games, it's an issue of people not realizing they're handing over real cash in games which are marked free.
The EU also has't said they want Free/IAP games to not be marked as free, but what they said is 'Games advertised as “free” should not mislead consumers about the true costs involved' (i.e IAP should be made more explicit).