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This is all about whether or not a preorder can be considered a digital download. The law says you're allowed to cancel any order you do via mail or online, within 14 days. There is however a special law specifically excluding digital downloads from this rule. So the issue is that Nintendo is using the preloading feature to try to get around the law by saying that the preorders should be considered digital downloads, since software is indeed downloaded to the device. The consumer protection authority is claiming that this does not matter, since the software you actually payed for is not installed in a usable form, and the preload should in practice be regarded as equivalent to a preorder.