Valve Faces £656M UK Class Action Lawsuit Over Steam's Alleged Anti-Competitive Practices

Valve, the company behind Steam, the largest digital distribution platform for PC games, is facing a £656 million class action lawsuit in the UK.

Vicki Shotbolt, a digital rights campaigner, filed the lawsuit on June 5, 2024, accusing Valve of abusing its dominant market position and overcharging 14 million UK PC gamers.

Valve Faces £656 Million Class Action Lawsuit for Ripping Off PC Gamers

The lawsuit against Valve centers on accusations of anti-competitive practices. Vicki Shotbolt, the claimant, argues that Valve unfairly restricts competition by enforcing strict pricing rules on game publishers, preventing them from offering lower prices on other platforms. This allows Valve to maintain high prices on its Steam platform and charge publishers a commission of up to 30%.

Shotbolt's claim asserts that Valve's actions have led to UK consumers paying inflated prices for PC games and downloadable content (DLC). She represents 14 million UK consumers who have made such purchases on Steam since June 5, 2018.

In a statement on a website dedicated to the claim, it was asserted, "We believe Valve Corporation has been unfairly shutting out competition for PC games and in-game content, which has meant that UK customers have paid too much for these products."

Milberg London LLP, a law firm with experience in group action lawsuits against corporations, is supporting the legal action. The firm is also involved in a similar lawsuit against Sony, claiming overcharging on the PlayStation Store.

What's Next?

UKRAINE - 2021/07/16: In this photo illustration, Valve Corporation (also known as Valve Software) logo of a US video game developer, publisher, and digital distribution company is seen on a smartphone screen.

VGC reports that if the lawsuit is successful, each class member could be entitled to compensation ranging from £22 to £44. However, the case is expected to take several years to resolve, as is typical of such legal disputes.

Steam is a prominent platform where players can purchase PC games and in-game extras. In 2023, Steam achieved record-breaking sales, generating over $9 billion (£7.1 billion) in global revenue.

This success was driven by the sale of 580 million games and the release of 14,000 new games. Despite this vast market, the top 10 bestselling games accounted for 61% of all sales, and the top 100 games made up 91% of total sales.

Vicki Shotbolt emphasized the importance of the lawsuit by stating, "Valve is rigging the market and taking advantage of UK gamers."

This is not the first time Valve has faced legal challenges. In May 2023, Immersion Corporation sued Valve over patent infringement related to the Steam Deck and Valve Index's haptic technology. Immersion claimed Valve used its patents without permission and sought damages and royalties in addition to an injunction.

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