The UK specialist competition tribunal has certified the £656m legal claim against Valve brought by children’s rights campaigner, Vicki Shotbolt. This marks a significant first victory for the class of around 14 million PC gamers against Valve – the owner of popular gaming platform, Steam.
The claim alleges that Valve has abused its dominant position in the PC gaming market under UK competition law by imposing excessive commission charges and anti-competitive restrictions on game developers selling gaming titles on the Steam platform.
These excessive commission charges are passed onto consumers by way of increased prices for PC games and in-game content.
Ms Shotbolt, the class representative, asserts that Valve’s conduct has increased the prices of games across the entire market. Therefore the class is not limited to Steam users but also includes purchasers of PC games and downloadable content on other gaming platforms and distribution channels.
Trying to argue that adding a 30% tariff to a good doesn’t cause the price to go up is nonsense. It is basic economics that a good which costs more will need to sell for more than a good that costs less.
I don’t know if you’ve been paying attention to geopolitics, but this argument has already played out in the real world and to the surprise of nobody, raising costs via tariffs raise the costs to the end consumer.
Your games cost more because of fees like this.
This price pressure freezes out smaller developers who, if they didn’t need to pay 30% of their gross revenue in fees, would otherwise have been able to run a successful business. Those small developers, which don’t exist, are not making games and that means less variety in the market places and more domination by the large AAA developers.