<a href="https://delimiter.online/blog/Steam-deck-oled-stock/” title=”Valve”>Valve Corporation, the operator of the Steam digital game store, is facing a collective antitrust lawsuit in the United Kingdom seeking damages of up to £656 million. The claim, filed at the Competition Appeal Tribunal in London, alleges the company abused its dominant market position, resulting in UK consumers paying supra-competitive prices for PC games and downloadable content.
Details of the Legal Claim
The collective proceedings claim was filed by digital rights campaigner Vicki Shotbolt. It asserts that Valve’s pricing policies and practices on its Steam platform have forced UK gamers to pay excessively high prices since 2018. The legal action is being brought on behalf of an estimated 14 million people in the UK who have purchased PC games or add-on content through Steam in the last six years.
The claim centers on allegations that Valve imposes price parity obligations. These rules prevent publishers from selling Steam activation keys at lower prices on other platforms. The lawsuit argues this practice restricts competition and violates UK and European competition law.
Background on Platform Economics
The economics of digital storefronts have been a significant topic in the games industry. This debate was notably advanced by Epic Games CEO Tim Sweeney, who has long criticized standard revenue share models. His company’s complaints led to the launch of the Epic Games Store, which charges developers a 12% commission, and to subsequent legal actions against Apple and Google.
Those lawsuits successfully compelled the mobile platform giants to allow alternative game storefronts on their operating systems. The case against Valve in the UK represents a new front in this broader scrutiny of digital marketplace power and pricing control.
Valve’s Dominant Market Position
Steam is the dominant digital distribution platform for PC gaming globally. The claim filed in the UK alleges that Valve holds a market share exceeding 90% for the distribution of PC games in the country. This dominant position, the claimants argue, gives Valve the power to impose unfair trading terms.
A core allegation is that Valve’s “Most Favored Nation” clauses in its agreements with publishers prevent price competition. If a publisher sells a game cheaper on another website, they are contractually obligated to raise the price on Steam to match. The lawsuit contends this practice directly harms consumers by artificially inflating prices across the entire market.
The Path Forward and Potential Impact
The case is currently at the certification stage at the Competition Appeal Tribunal. This is a critical procedural step where the tribunal must decide whether the claim can proceed as a collective action on behalf of the defined class of millions of UK consumers. A hearing for this certification is expected.
If the lawsuit is certified and ultimately succeeds, Valve could be liable for the substantial £656 million in damages. The case also has the potential to force a permanent change in Valve’s business practices regarding how it manages pricing across different sales channels, potentially leading to lower prices for consumers in the UK and setting a precedent for other jurisdictions.
The next major development will be the tribunal’s decision on whether to allow the collective proceedings to move forward to a full trial. The outcome of this UK claim will be closely watched by regulators, consumers, and the global video game industry.
Source: GamesIndustry.biz
