Valve’s $900m Class Action Lawsuit Not Dismissed

Valve’s recent legal battle against claims of overcharging and anti-competitive practices has hit a snag, with the court ruling against the company’s attempt to dismiss the case. Attorney Vicki Shotbolt is leading the charge on behalf of 14 million Steam users in the UK, accusing Valve of policies that violate UK laws on anti-competitive pricing and unfair trading conditions. The crux of the argument revolves around Valve’s stipulation that games sold on Steam are not offered at lower prices on other platforms and that additional content for games purchased on Steam can only be bought through the Steam platform. Shotbolt asserts that these measures have allowed Valve to establish a dominant position in the PC gaming market, potentially breaching UK competition laws.

Class action lawsuits are relatively uncommon in the UK, where mass litigation is known as a “collective action claim” and operates on an “opt-out” basis. Shotbolt’s legal team is representing British Steam users in the case unless they explicitly choose not to participate. Despite Valve’s objections, the Competition Appeal Tribunal ruled on January 26 that the case would proceed. Valve had challenged the lawsuit on technicalities related to methodology and the definition of the affected class of individuals, but the tribunal was unpersuaded by their arguments. Shotbolt’s team made revisions to the class definition to address Valve’s concerns, leading to the tribunal’s decision to allow the case to move forward.

If the PCR is successful in their legal action, Valve could face significant financial implications, with UK residents potentially receiving compensation totaling £656 million, which is approximately $904 million. This lawsuit could potentially impact all PC gamers in the UK, although most Steam users may be unaware of the legal proceedings. The lawsuit offers affected individuals the option to opt out, but many may not exercise this choice. As the case progresses, Valve will likely be hoping for a swift resolution given the substantial financial stakes involved. The final outcome of the lawsuit could have a lasting impact on how digital platforms like Steam operate within the realm of UK competition law.