Gaming Giant Steam Accused of Ripping Off 14m UK Gamers

Valve Corporation, the owner of Steam, the world’s largest digital distribution platform for PC games, finds itself embroiled in a legal quagmire as it faces a lawsuit amounting to £656 million. The lawsuit alleges that Valve leveraged its market dominance to overcharge a staggering 14 million UK gamers.

Digital rights campaigner Vicki Shotbolt, spearheading the case, asserts that Valve’s practices amount to market manipulation and exploitation of UK gamers. The complaint, filed at the Competition Appeal Tribunal in London, accuses Valve of monopolistic behaviour, alleging that it stifled competition in the PC gaming market. The crux of the accusation revolves around Valve’s purported enforcement of price parity obligations, effectively compelling game publishers to adhere to pricing standards that prevent titles from being sold at lower prices on competing platforms.

Ms. Shotbolt contends that these practices have enabled Steam to impose an exorbitant commission, reaching up to 30%, resulting in UK consumers paying inflated prices for PC games and add-on content. The lawsuit, structured as a collective action claim, represents a concerted effort to seek redress for a substantial group of affected individuals. Ms. Shotbolt aims to challenge Valve’s alleged infringement of UK competition law spanning at least six years, emphasizing the imperative to halt such unlawful conduct and secure restitution for affected consumers.

Steam, renowned as a premier PC gaming platform facilitating game purchases and in-game transactions, has enjoyed remarkable success, boasting record-breaking sales in 2023, exceeding $9 billion (£7.1 billion) in global revenue. However, despite its commercial triumphs, the gaming market remains highly concentrated, with the top 10 bestselling games accounting for a substantial portion of sales.

Backing the claim is legal firm Milberg London LLP, specializing in group action cases against corporate entities. Partner Natasha Pearman underscores the significance of collective actions in upholding consumer rights and holding corporations accountable for market malpractices.

This lawsuit against Valve adds to a growing trend of collective action legal challenges targeting major tech companies. Similar claims lodged at the Competition Appeal Tribunal have sought redress from industry giants such as Facebook, Google, and Sony, reflecting a broader push to safeguard consumer interests and promote fair market practices.