Valve faces a 750 million euro lawsuit: Steam accused of abusing its market dominance
Steam’s dominance and legal action in the pc gaming market
When it comes to buying a digital game for PC, the first store users turn to is Steam. While it is true that Epic Games is doing everything possible to become an alternative, it does not have the same reach or the same level of popularity as Valve.
Steam’s dominant position in the digital game marketplace allows it to do whatever it wants with the commissions it charges on each sale, a fee set at 30 percent. Steam user Vicki Shotbolt believes that Steam’s practices force users in the United Kingdom to pay more than they should, and in June 2024 she filed a lawsuit against Steam representing around 14 million users in the country.
Although Valve attempted to stop the case by arguing that it did not show how affected users would be identified or how the corresponding compensation for each individual would be calculated, the UK Competition Appeal Tribunal in London has allowed the case to proceed. So far, Vicki Shotbolt has secured more than 18 million pounds to finance the lawsuit.
Market restrictions, consumer impact, and possible consequences
The lawsuit also includes Steam’s strict rules that all developers and publishers must follow in order to offer their titles on the store, such as requiring prices to be the same on other platforms. This prevents them from offering the same titles at lower prices elsewhere, thereby reducing competition and limiting choice for both developers and players.
By dominating the PC video game market, Steam is able to maintain this commission, since, aside from Epic Games, there are no real alternatives. And as we all know, not all titles available on Steam are also available on Epic Games, despite the fact that from the outset Epic has applied much lower commissions for developers, set at just 12 percent.
Another aspect addressed in the lawsuit is how additional game content is managed. If a player buys a game on Steam, they cannot purchase expansions from other stores, forcing them to go through Steam’s store whether they want to or not. This limits players by preventing them from searching for more affordable options elsewhere.
If the case moves forward successfully and the claimant wins, Steam users in the United Kingdom who have purchased expansions or games since 2018 could receive compensation initially estimated at between 25 and 50 euros. This amount could vary depending on how much they have spent on the platform, potentially reaching a total of more than 900 million euros across Steam accounts.
The next companies that could receive court summonses may be those responsible for the Nintendo, Sony, and Xbox stores
Journalist with a solid career path that began in 2020. Since then, my professional work has always been closely connected to the technology sector. My academic background includes a Bachelor’s degree in Journalism from New York University (NYU), which laid the foundation for everything that followed. I later earned a Master’s degree in Creative Writing from Stanford University, and my passion for artificial intelligence led me to complete the course “Google AI for Anyone.”
My central passion is video games, which is why I also completed a postgraduate program in eSports Journalism. The key to my work is always seeking a critical, and above all, well-grounded perspective to understand how technology is shaping a new world that is just around the corner
