A lawsuit was filed last week against Valve and several game developers in Calfornia federal court, alleging that Valve ‘abuses the Steam platform’ crime to prevent other game distribution platforms, such as the Epic Games Store and Microsoft Store , compete on price.
As reported by The Hollywood Reporter, the case is specifically related to a ‘Most Favored Nations’ clause that Valve developers agree to in the Steam Distribution Agreement. Basically, developers releasing their games agree that their Steam release will be offered at the same price as the game on other platforms.
The case says: ‘The ability to offer computer games to consumers at lower prices is one way a firm or a new entrant can gain market share. If this market works properly, that is, if the Steam MFN does not exist and platforms were able to compete on price – platforms that compete with Steam will be able to offer the same (or higher) margins to game developers and at the same time lower prices to consumers. ‘
Their five plaintiffs in the case claim that they were ‘forced to pay exceptionally competitive prices’ because of the provisions of the most favorable Nations.
In addition to Valve, the pack lists several game developers who have signed the Steam Distribution Agreement as defendants, including CD Project, Ubisoft, kChamp Games, Rust LLC and Devolver Digital. I asked Valve for comment and would update this post if they would reply.
The price of games is not completely determined by the operator of each platform, but is determined by game developers and publishers themselves – albeit in partnership with the platform operator. Removing the ‘Most Favored Nations’ clause from Valve’s agreements with developers does not automatically mean cheaper prices for other stores. Although Epic takes less sales, developers can simply decide to keep the profits rather than pass on savings to the consumer.
That said, it will put the choice in developers’ hands rather than Valve, and it will enable Epic and other platform operators to offer incentives to give lower prices to developers. It is not difficult to suggest Epic-paying developers to encourage them to sell their games cheaper in the Epic Games Store, just as they currently pay to offer free and exclusive games.
You can read the full complaint on The Hollywood Reporter.