Valve’s significant presence in the PC gaming landscape has drawn the attention of UK activist Vicki Shotbolt, who is challenging the company’s pricing practices on its Steam platform. According to reports from the BBC, Shotbolt has initiated a lawsuit against Valve, seeking £656 million (3 million) for what she describes as the company’s abuse of its market dominance.
Allegations Against Valve
The crux of Shotbolt’s lawsuit lies in her assertion that Valve restricts the sale of games on its Steam platform, preventing developers from offering their titles through alternative distribution channels that might offer lower prices. Additionally, the lawsuit alleges that Valve enforces anti-steering provisions related to its in-game purchasing model. This model stipulates that downloadable content (DLC) for a game can only be utilized if the base game was purchased through Steam.
Another point of contention is Valve’s commission structure, which Shotbolt claims results in excessive charges for consumers. The lawsuit suggests that Valve’s commission rates are disproportionately high compared to the value provided to gamers and developers alike.
Valve’s commission model is indeed noteworthy. The company typically retains a 30% cut of a game’s revenue for sales under .9 million. This rate decreases to 25% for sales exceeding million and further drops to 20% for sales surpassing million. While this tiered structure offers some relief for high-performing titles, the standard 30% commission aligns with the industry norm, as many other platforms—including Nintendo, Xbox, and PlayStation—also adopt similar rates.
In contrast, the Epic Games Store has emerged as a notable exception, charging a significantly lower commission rate of 12%. This difference has sparked discussions within the gaming community about fair pricing and the sustainability of various business models.
Despite the legal challenges, Valve’s Steam platform continues to thrive, with the company recognized as one of the most efficient in the industry, generating an impressive million in revenue per employee. As the lawsuit unfolds, it remains to be seen how this will impact Valve’s operations and the broader gaming ecosystem.
