Valve Inc. finds another case on his desk as a suspected class action lawsuit is filed earlier this week, alleging that video game giant is abusing Steam by requiring developers to sell their games across all platforms at the same price once it hits the store PC distributor enters.
The case, which was spotted by The Hollywood Reporter and is being handled by lawyers at the law firm Vorys Sater in Ohio, states that Valve’s “Most Favored Nations” clause in its Steam Distribution Agreement forces developers to agree that “the price of a computer game Steam platform will be the same price as the game developers sell their computer games on other platforms. ‘Lawyers note that Valve abuses the MFN clause by making it difficult for other platforms – such as the Epic Games Store, itch .io and Microsoft Store – to compete with Steam.
“The Steam MFN also hinders innovation by creating an artificial barrier to access to platforms,” the lawsuit alleges. ‘If a market like this one is very concentrated, a new entrant can benefit consumers by interrupting the prices of the incumbent. The ability to offer computer games to consumers at lower prices is one way a business or new entrant can gain market share. If this market were to function properly – that is, if the Steam MFN did not exist and platforms could compete on price – platforms competing with Steam could offer the same (or higher) margins to game developers while being lower at the same time. prices to consumers. ‘
The focus focuses on game developers and consumers, as Valve’s Steam is the ‘dominant platform for game developers to distribute and sell computer games’ to humans. Due to Steam’s ubiquity, attorneys are trying to disrupt Steam’s market ownership to make the distribution and sale of computer games more equitable for manufacturers and players.
This lawsuit comes not long after Valve Inc. has been accused of breaking down a patent that the company eventually implemented in its now discontinued Steam Controller.