Valve Lawsuit Upgraded to Class Action, Potential Benefits for Developers

Valve, the owner of the popular platform Steam, is facing legal trouble in the form of an antitrust lawsuit that has now been granted class-action status. This means that the case brought by Wolfire Studios and Dark Catt Studios could potentially benefit more developers in the long run.

The recent court document revealed that the class-action lawsuit will include developers, publishers, or individuals who have paid a commission to Valve for game sales since January 28, 2017. This commission refers to the 30% cut that Steam takes from each purchase made on the platform.

United States District Judge Jamal N. Whitehead granted the motion for class certification, allowing the lawsuit to extend beyond just the initial two developers. The judge also rejected Valve’s request to exclude expert testimony from Dr. Steven Schwartz, who is supporting the developers’ case.

Wolfire Studios initially filed the antitrust lawsuit against Valve in April 2021, claiming that the 30% commission on game purchases was unreasonably high and anti-competitive. Although the claim was dismissed initially, the studios adapted their arguments and refilled the lawsuit in May 2022.

David Rosen, the founder of Wolfire Studios, argued that Valve’s practices restricted gamers’ freedom to choose how much they pay and hindered competing stores from offering lower commission rates. Valve defended its 30% revenue cut as an industry standard.

While the legal dispute is ongoing, some believe that if the studios win, Valve may have to reconsider its revenue share policies. The outcome of this lawsuit has the potential to reshape how platforms like Steam operate in the future.