A new class action lawsuit has been filed against Valve Software, alleging that the company is a “platform monopolist” that has kept game prices artificially high and prevented other companies from entering the digital distribution market for PC gaming. The lawsuit specifically points to Steam, Valve’s online storefront, as the source of these anticompetitive practices. Steam boasts millions of users and offers a wide variety of games, but the lawsuit claims that Valve has maintained its dominance through practices such as imposing a 30% “tax” on publishers and using a “platform most-favored-nations” (PMFN) clause to prevent competing platforms from offering lower prices or additional features.
Competitors such as Epic Games CEO Tim Sweeney estimate that Steam holds a significant market share in the PC gaming industry, accounting for approximately 75% to 85% of revenue. The plaintiffs in the lawsuit are consumers who have purchased games on Steam at what they believe to be inflated prices. They are represented by the law firm Hagens Berman, which has a history of involvement in class action suits against various companies. The lawsuit alleges that Valve’s practices have kept the cost of PC gaming high for consumers by stifling price competition and preventing potential competitors from gaining traction in the market.
This is not the first antitrust lawsuit filed against Valve, as the company has faced similar allegations in the past. One notable suit was filed by Wolfire Games, alleging that Valve threatened to pull their game from Steam if it was sold at a lower price on another platform. The 30% revenue split that Valve takes from sales on Steam has also been a point of contention, with some viewing it as a tax on publishers. However, Valve has maintained that publishers set the prices for their products and the revenue split is a standard industry practice.
Despite efforts from other companies to compete with Steam by launching their own digital storefronts, many of these competitors have quietly returned to the platform. Valve’s continued growth and dominance in the PC gaming market has led to criticism of its practices, with some alleging that it has created barriers to entry for other companies. The outcome of the latest lawsuit against Valve remains to be seen, but it adds to the ongoing legal challenges the company faces regarding its business practices in the PC gaming industry.
