Valve Accused of Overcharging 14 Million UK Gamers
Valve Corporation, the owner of Steam, the popular digital distribution platform for PC games, is facing a lawsuit of £656m for allegedly exploiting its dominance in the market to overcharge 14 million UK gamers. Digital rights campaigner Vicki Shotbolt has filed the case, claiming that Valve has been rigging the market and taking advantage of UK consumers.
The lawsuit, filed at the Competition Appeal Tribunal in London, accuses Valve of engaging in anti-competitive practices by imposing price parity obligations on game publishers. These obligations prevent games from being sold at lower prices on competing platforms, ultimately leading to UK consumers paying higher prices for PC games and add-on content on Steam.
Vicki Shotbolt, who is leading the collective action claim against Valve, alleges that the company has been breaching UK competition law for at least six years. The goal of the lawsuit is to put an end to Valve’s unlawful conduct and recover the money owed to affected consumers.
Steam, known for its extensive library of games and in-game purchases, has seen significant success in recent years. In 2023, the platform generated over $9bn in global revenue, with 580 million games sold and 14,000 new games released. However, the market is highly concentrated, with the top 10 bestselling games accounting for 61% of all sales.
Legal firm Milberg London LLP, which specializes in group action cases against large companies, is supporting the claim against Valve. According to Natasha Pearman, a partner at the firm, collective actions like this are essential to protect consumers and ensure that markets function fairly.
This lawsuit against Valve is part of a broader trend of collective action legal cases against major tech companies. Similar claims have been filed against Facebook, Google, and Sony, highlighting the growing scrutiny of big tech and their business practices. As the case unfolds, it will be interesting to see how Valve responds to the allegations and how the legal system addresses concerns about anti-competitive behavior in the gaming industry.