Steam has been the undisputed king of PC gaming for two decades. But in the UK, the crown is looking a little heavy. A massive £656 million class-action lawsuit against Valve has just been cleared to proceed to trial. This could change how we buy games forever.
The lawsuit, spearheaded by digital rights campaigner Vicki Shotbolt, represents roughly 14 million UK gamers. The core of the argument? That Valve is using its “dominant position” to rig the market, forcing prices up and competition out.
What is Valve accused of?
This isn’t just a general grievance. The lawsuit targets three very specific business practices that Shotbolt and her legal team at Milberg London LLP claim are illegal under UK competition law:
- The “Price Parity” Trap: The claim alleges that Valve forces publishers to sign “Platform Parity Obligations”. If a developer sells a game on Steam, they are allegedly barred from selling it cheaper on rival stores like the Epic Games Store or GOG. This effectively prevents other stores from using lower prices to compete with Steam.
- Add-on Lock-in: Ever tried to buy DLC on one platform for a game you own on another? Usually, it doesn’t work. The lawsuit argues that by requiring all add-on content to be purchased through the Steam interface if the base game was bought there, Valve is “locking in” users and preventing them from shopping around for better deals on expansions or in-game currency.
- The 30% “Tax”: Because of the above two points, the lawsuit argues that Valve is able to maintain an “excessive” commission of 30%. This fee is then passed directly onto us, the consumers, in the form of higher game prices.
Why Care?
For most of us, Steam is the “good guy”. It gave us the Steam Deck, Proton for Linux, and a library system that actually works.
However, the “30% cut” has been a point of contention for years. While Epic Games famously dropped their cut to 12% to lure developers. They haven’t been able to make a dent in Steam’s market share at all. And this lawsuit suggests that’s because the deck is stacked.
If the court finds that Valve has been artificially keeping prices high across the board. Every UK gamer who has made a purchase on Steam since 2018 could be entitled to compensation. We’re talking anywhere from £22 to £44 per person depending on the final ruling.
A Global Trend
Valve isn’t the only giant facing this music. This case follows similar “gatekeeper” lawsuits against Apple (the Epic v. Apple saga) and Google.
Regulators and activists are increasingly looking at “walled gardens” and asking if the convenience of a single ecosystem is worth the potential lack of price competition.
Valve tried to get this case thrown out, arguing that the methodology for calculating the “overcharge” was flawed. But the Competition Appeal Tribunal in London didn’t buy it, ruling that the case has enough merit to face a full trial.
What’s Next?
Don’t expect a check in the mail tomorrow. This is going to be a long, technical legal battle.
Valve will defend its “Steam Key” system, likely arguing that it actually helps competition by allowing third-party sites like Humble Bundle to sell Steam games (often at a discount) without Valve taking a penny of that specific sale.
For now, the status quo remains. But for the first time in a long time, the “Valve Tax” is being put under a legal microscope in the UK.
By the Numbers
- £656 Million: The total estimated damages sought.
- 14 Million: The number of UK gamers automatically included in the “opt-out” claim.
- June 2018: The date from which purchases are being considered for compensation.
- 30%: The standard commission Valve takes from most sales (dropping to 20% only after a game makes over $50m).
Whether you love Steam or loathe the monopoly, this trial will force Valve to pull back the curtain on its secretive developer agreements. It’s a landmark moment for consumer rights in the digital age.
No doubt Epic is sat in the wings waiting to strike in some way. Steam is a massive target, and Valve are likely to end up in a prolonged battle, now.
The market should be fair, but Steam is the superior storefront, and it’s going to take some significant shift to make a massive change to modern gaming.
