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Lawsuit alleges Valve are abusing power to keep game prices highCD Projekt and Devolver Digital also named as defendants
CD Projekt and Devolver Digital also named as defendants
A class action lawsuit has been filed in Calfornia federal court this past week against Valve and several game developers, alleging that Valve “abuses the Steam platform’s market power” to prevent other game distribution platforms, such as the Epic Games Store and Microsoft store, from competing on price.
The Land Of The Frag | Mystery Steam Reviews (U.S. Presidents In Video Games)Watch on YouTube
The Land Of The Frag | Mystery Steam Reviews (U.S. Presidents In Video Games)
The suit states that, “The ability to provide PC games to consumers at lower prices is one way a firm or new entrant could gain market share. If this market functioned properly—that is, if the Steam MFN did not exist and platforms were able to compete on price—platforms competing with Steam would be able to provide the same (or higher) margins to game developers while simultaneously providing lower prices to consumers.”
Their five plaintiffs bringing the suit allege that they have been “forced to pay supracompetitive prices” due to the Most Favoured Natioons provision.
Alongside Valve, the suit names several game developers who have signed the Steam Distribution Agreement as defendants, including CD Projekt, Ubisoft, kChamp Games, Rust LLC, and Devolver Digital. I’ve asked for comment from Valve and will update this post should they reply.
That said, it would put the choice in developers' hands rather than Valve, and it would allow Epic and other platform operators to offer incentives to lower prices to developers. It’s not hard to picture Epic paying developers to incentivise them to sell their games cheaper on the Epic Games Store, much as they currently pay to offer free and exclusive games.
You can readthe full complaint over on The Hollywood Reporter.
