Valve to be sued in the UK for £656m in proposed damages

Valve, the PC games giant, is currently embroiled in a legal battle in the UK facing a £656 million lawsuit. The Competition Appeal Tribunal in London has decided that Valve must face trial over allegations that its revenue share model is detrimental to consumers. The lawsuit, filed in June 2024 by Vicki Shotbolt, CEO of Parent Zone, argues that Valve’s 30% revenue share on all Steam sales results in increased costs for consumers. Shotbolt claims that this high commission fee ultimately harms consumers by driving up prices.

One of the key issues raised in the lawsuit is the lack of consumer choice when purchasing add-on content for games on Steam. According to Shotbolt’s lawyers, consumers are essentially “locked in” to using Steam for all additional purchases related to the games they buy on the platform. This lack of competition is seen as an anti-competitive practice that harms consumer interests.

The lawsuit represents approximately 14 million Steam users in the UK, with damages estimated to reach £656 million. Shotbolt’s filing outlines the potential financial impact on consumers, with estimates ranging between £8 and £23 for game purchases, and between £14 and £29 for add-on content. Collectively, this could cost consumers between £22 and £44, highlighting the significant financial burden imposed by Valve’s revenue share model.

Shotbolt has secured funding of over £18.6 million to support the lawsuit, signaling strong support for the legal challenge against Valve. Despite Valve questioning Shotbolt’s funding arrangements in an attempt to halt the trial, the case is set to proceed to determine the validity of the claims made against the company.

This is not the first time Valve has faced legal action in the UK over its revenue share practices. Previous cases, such as those brought by Wolfire Studios and Dark Catt Studios, also targeted Valve’s 30% revenue cut, which was deemed excessively high and anti-competitive. The consolidation of these cases into a single class action lawsuit underscores the widespread concern over Valve’s revenue share model and its impact on consumers.

As Valve prepares to defend itself in court, the outcome of this lawsuit could have significant implications for the company’s business practices and the wider digital distribution market. The case highlights the growing scrutiny on platform owners and their revenue share models, as regulators and consumers alike demand greater transparency and fairness in the digital marketplace. Valve’s legal battle in the UK serves as a cautionary tale for platform owners, emphasizing the importance of consumer protection and competition in the increasingly digitalized gaming industry.