Valve has a serious legal challenge in the UK, facing a lawsuit seeking £656 million ($843 million) for charges relating to its alleged abuse of Steam's dominant market position to overcharge consumers and stifle competition.
Steam Monopoly Valve Sued for £656 Million in the UK
The lawsuit, led by children's digital rights campaigner Vicki Shotbolt and facilitated by Milberg London (via the BBC), claims that Valve has "overcharged 14 million PC gamers and exploited its dominant position in the UK market".
"Companies that are dominant in a market are not allowed to charge excessive or anti-competitive prices," Milberg said on steamyouoweus.co.uk, a website dedicated to the lawsuit. "They are also prohibited from imposing unfair trading conditions that restrict competition."
The lawsuit claims that Valve's practices have forced UK consumers to pay higher prices for PC games and game content. Central to the complaint is the allegation that Steam's dominant position allows Valve to impose an "excessive commission of up to 30%" on game publishers, inflating consumer prices.
Main allegations
- Excessive Commission: Valve is accused of maintaining an "excessive commission" of up to 30% on game sales, resulting in inflated prices for consumers.
- Price Parity Obligation: Valve allegedly imposes clauses on developers preventing them from offering lower prices on other platforms.
- Tying Practices: It is alleged that all ancillary content for games purchased on Steam must also be purchased on Steam, which prevents competition.
In the past, Valve has faced fines, including a $2.4 million penalty in Australia for not having a refund policy and a $1.73 million fine related to geo-blocking games in the EU.
Even with a small adjustment to its revenue sharing model in 2018, Valve's 30% cut remains controversial, particularly compared to the 12% levied by competitors such as the Epic Games Store.
In addition, Valve is involved in a US-based antitrust lawsuit brought by Wolfire Games in 2021, which claims that Valve's practices suppress competition and involve an unreasonably high sales discount.
Ongoing Legal Proceedings
The current legal case, filed as a 'class action' by Vicki Shotbolt, represents around 14 million UK Steam users. It is subject to clearance by the UK Competition Appeal Tribunal.
The tribunal has already authorised a similar action against Sony in 2023, suggesting that there is a precedent for this type of action.
Should the case proceed and Valve be found liable, it could have a significant impact on the operation of digital storefronts, potentially forcing changes in commission structures and competitive practices.