Valve Faces $900M Lawsuit Over Alleged Market Manipulation
Valve, the developer behind Steam, the leading PC gaming platform, is facing a £656 million (approximately $900 million) class-action lawsuit in the UK. The lawsuit, initiated in 2024 by digital rights advocate Vicki Shotbolt, has received the green light to proceed from the Competition Appeal Tribunal.
Key Allegations Against Valve
The lawsuit accuses Valve of market manipulation. It claims the company forces game publishers and developers to avoid offering their titles at lower prices on competing platforms. This practice restricts competition and ensures that Steam always receives the most favorable pricing, limiting options for consumers.
Another allegation includes Steam’s policy that ties game content exclusively to its platform. Steam versions of games only work with their corresponding downloadable content (DLC) from Steam. This restriction reportedly discourages players from purchasing add-ons from other platforms, effectively locking them into Valve’s ecosystem.
- Excessive commissions: The lawsuit alleges Valve charges a 30% commission on every sale, inflating costs for players.
- Consumer harm: The claim asserts that Valve’s practices have led to higher prices and reduced choice for gamers.
- Collective action: The case represents approximately 14 million Steam users in the UK who have made purchases since 2018.
Support from Legal Experts
The lawsuit is backed by Milberg London LLP, a firm known for its advocacy against corporate malpractices. Partner Natasha Pearman stated that competition law exists to safeguard consumers. She emphasized the importance of collective actions in holding major corporations, such as Valve, accountable for their market behaviors.
Further Legal Challenges in the US
In addition to the UK lawsuit, Valve is also contending with a similar case in the United States. Filed in August 2024, the US lawsuit features four plaintiffs from California, Florida, and Missouri. This case mirrors the UK allegations, focusing on Valve’s pricing structures and commission rates.
Financial Performance
Steam has reported over 132 million monthly active users since 2021. According to Alinea Analytics, it generated over $16 billion in revenue in 2025, marking a 5.7% increase from the previous year. Valve’s foray into hardware, including the Steam Deck launched in 2022 and upcoming products such as the Steam Machine and a new Steam Controller, further underscores the company’s evolving strategy in the gaming market.
Conclusion
The outcome of this significant lawsuit remains uncertain. Legal disputes of this nature can take years to resolve, creating a prolonged wait for the involved parties. As Valve faces scrutiny from both the UK and US, the gaming community remains watchful of developments regarding these allegations of market manipulation and anti-competitive practices.
