Valve, the known gaming company, for the widely used Steam platform is currently embroiled in a significant legal case in the United Kingdom. The lawsuit against Valve amounts to a $838 million (£656 million) and centers on allegations of engaging in price fixing and anti competitive behaviors. This legal action, initiated by activist Vicki Shotbolt accuses Valve of exploiting its position within the PC gaming industry.
The lawsuit contends that Valve has enforced “price parity obligations” on game developers effectively restricting them from offering their products at prices, on gaming platforms. As a result of this alleged practice British consumers are believed to have been charged for games and additional content purchased through Steam.
The Implications of Valve’s Alleged Practices
If the accusations turn out to be true Valves actions might violate competition regulations. Companies that hold a position, in a market are not allowed to set high or anti competitive prices nor can they enforce unfair trading terms that impede fair competition. The legal action also targets Valves 30% fee on game sales, which is criticized as excessive and only made possible due to the companys presence in the market.
The legal case, known as an “opt out collective action claim” ( to a class action lawsuit in the US) pertains to UK consumers who have bought games or in game items on Steam since June 2018. Notably because of its “opt out” nature impacted consumers will automatically be part of the lawsuit unless they actively opt out. The verdict of this lawsuit could have consequences, for both Valve and the wider PC gaming industry.