Valve’s recent legal challenges have taken a significant turn as a judge has ruled against the company’s attempt to dismiss a class action lawsuit concerning allegations of overcharging and anti-competitive practices. This legal action, initiated by lawyer Vicki Shotbolt on behalf of 14 million Steam users in the UK, will now proceed, as reported by the BBC.
Details of the Case
First filed in 2024, Shotbolt’s claim aims to demonstrate that Valve’s policies on its platform, Steam, contravene UK laws regarding “anti-competitive prices” and “unfair trading conditions.” Central to the argument is Valve’s stipulation that games sold on Steam cannot be offered at permanently lower prices on competing platforms. Furthermore, once a game is purchased on Steam, any additional content—such as downloadable content (DLC), expansion packs, or cosmetic items—must also be acquired through Steam. Shotbolt contends that these practices enable Valve to maintain a dominant position in the PC gaming market, potentially violating UK competition law.
In the UK, class action lawsuits are relatively rare, referred to as “collective action claims” and operating on an “opt-out” basis. This means that unless individuals explicitly state their desire to not participate, they are automatically included in the lawsuit. This unique structure allows Shotbolt and her firm to represent a vast number of British Steam users.
Valve’s Response
Valve has expressed strong objections to the claims and sought to have the case dismissed. The Competition Appeal Tribunal’s ruling, issued on January 26, indicates that Valve’s arguments were primarily focused on the assertion that the “PCR” (the shorthand for Shotbolt’s group) had not presented a sufficient methodology for assessing the impact of the alleged Platform Parity Obligations (PPOs). Valve also argued that the class definition was inadequate, particularly concerning younger users who might not be able to opt in or out of the action.
The tribunal, however, found Valve’s objections unconvincing. It noted that Shotbolt’s team had made revisions to the proposed class definition that addressed Valve’s concerns, specifically ensuring representation was limited to individuals over the age of 13. Consequently, the tribunal dismissed Valve’s challenge, allowing the action to move forward.
Implications for Steam Users
This ruling paves the way for the lawsuit to progress, much to Valve’s chagrin. Users who wish to opt out of this collective action will soon have the opportunity to do so, as the FAQ on the case’s dedicated website indicates that the option will be available following the court’s certification. However, given that a vast majority of Steam users may remain unaware of this legal development, the situation presents an intriguing scenario.
If the PCR prevails, it could result in financial restitution for UK users, albeit likely in modest amounts. The claim seeks £656 million, approximately 4 million at current exchange rates. This figure has fluctuated since the story first emerged in 2024, when it was reported at 8 million. As the legal proceedings unfold, Valve may be eager to reach a swift resolution to mitigate potential financial repercussions, especially in light of the unpredictable nature of currency markets.
