Valve Faces $900M Lawsuit Over PC Monopoly Claims After UK Tribunal Decision
A UK tribunal has authorized a £656 million (approximately $901 million) collective action lawsuit against Valve. This lawsuit addresses alleged anti-competitive practices linked to Valve’s dominant PC storefront, Steam. The case, initiated in 2024 by digital rights advocate Vicki Shotbolt, has gained momentum following a decision from the UK’s Competition Appeal Tribunal.
Key Allegations Against Valve
The lawsuit claims that Valve has employed its power in the digital game distribution market to enforce restrictive practices. These include:
- Imposing platform parity obligations that prevent developers from offering more favorable terms on competing stores.
- Forcing consumers to purchase game add-ons exclusively through Steam, limiting competition.
- Charging high commission rates, typically around 30%, leading to elevated costs for consumers.
Class Action Details
Shotbolt’s legal action represents approximately 14 million UK consumers who have purchased games or add-on content via Steam since 2018. The tribunal’s recent ruling allows this class-action suit to move forward, despite Valve’s attempts to dismiss it on various grounds. These attempts included objections regarding the specificity of the claims related to commission structures and user identification methodology.
Valve’s Response and US Lawsuit
Valve initially contested the lawsuit but has now seen the tribunal permit the continuation of legal proceedings. The company faces additional scrutiny with a similar lawsuit in the United States. This U.S. case targets Steam’s 30% commission and has been ongoing since 2021, initiated by developers Wolfire Studios and Dark Catt Studios.
Industry Reactions
The topic has sparked discussions across the gaming industry. Recently, Remedy Entertainment defended its partnership with Epic Games regarding the exclusivity deal for Alan Wake 2. Epic Games CEO Tim Sweeney emphasized that increased competition benefits both gamers and developers by fostering better options and deals.
The outcome of the UK lawsuit could significantly impact Valve’s business model on Steam, which is a central hub for PC gaming.
