Wednesday, May 11th 2022
Valve Antitrust Class-Action Lawsuit Allowed to Proceed
A federal judge in Seattle has recently ruled that the antitrust class-action lawsuit brought against Valve by Wolfire Games over their Steam Key Price Parity Provision can proceed. The Key Price Parity Provision is a policy that prohibits game developers from pricing their games cheaper on competing storefronts such as the Epic Games Store even if they offer lower fees. The judge noted that Valve "relies on provisions within Steamworks Documentation to impose conditions on how non-Steam-enabled games are sold and priced." and that "Valve also threatens game publishers with punitive action, including removal of their Steam-enabled games, if they sell non-Steam-enabled versions of those games at lower prices,". The ruling states that allegations of the company exploiting it's market dominance to threaten and retaliate against developers were "sufficient to plausibly allege unlawful conduct". This decision will allow for a class-action lawsuit to be brought against Valve.
Sources:
Bloomberg Law, Casetext
54 Comments on Valve Antitrust Class-Action Lawsuit Allowed to Proceed
a Monopoly for too long , Good thing that EPIC has step in to atleast put some competition.
30% cut from developers(not good for smaller devs & they get hidden in the deepest pit of game dumps), and gone are the Golden Days of STEAM SALES.
Steam's key policy prohibits the sale of Steam keys at a lower price point than what the product costs on Steam. This has no effect whatsoever on Epic or GOG versions of these products simply because they're not Steam keys, meaning that the Steam key price parity policy doesn't extend to those sales.
Steam store's progressive sale % cut is irrelevant to key sales because Steam doesn't charge a fee to generate keys, nor does it get a cut of the key sales, at all. 100% of the key sales go to the publisher.
You can read Steam's policies yourself here.
Steam keys have no cut of the sales, and for the dev's are completly free
Hydroneer is solo dev(or was atleast, I don't know their current state) and is on the front page. I've attached steam, from private session. So no cookies and no login, as to show the standard view.
"We were here", "Astronner" and "Foundation" should be considered indie. And I know GTFO have been on the frontpage before, and they are indie (9 person at the time they were frontpage)
Statista gives 10'000+ games released in 2021 (it probably includes dlc's, packs, season pass, etc also) How would you determine which beloved indie game should be on the front page?
www.statista.com/statistics/552623/number-games-released-steam/
Have EGS started to cover for transaction cut, or is that one still on the customers over there?
One example
www.fanatical.com/en/game/rim-world
store.steampowered.com/app/294100/RimWorld/
The policy states that someone that has a game on Steam can't sell it cheaper on other stores like GOG or EGS, that's what they are contesting.
F Steam and their greed. I hope this changes. Stop shilling for Billionaires and companies.
These class actions are just the tip of the iceberg. In the EU, legislation is underway to create more equal opportunity on the digital markets, and it will happen, and it will find itself copied by other Western countries and likely a few more.
Those still in denial and rock steady trust in 'free markets to fix this' will hear reality knocking on the door soon. We could (and likely will) let corporate control escalate further before true shit hits the fan, or put differently, before they identify it as the shit it has already been for the past ten-twenty years.
The gist / TL DR here is 'don't tie yourself or your opinion to companies, they don't work for you'. In practice that means all those idiots harping on about muh fantastic Steam featureset completely glossed over the fact they tied themselves to a distribution platform that serves as a cash machine for a select few. The main purpose isn't to be nice to you, its to make money off you and make you dependant on them. Those people with their Reddit feature-compare lists literally said 'I'm your Slave, Gabe' and were proud of it. How deluded can you get, and how blind for not seeing that. The power of social media.
which would have no effect on Epic or GOG versions of your products because they are not sold in the form of Steam keys, they are store specific versions that are in no way connected with Steam. For example, there's an Epic version of Borderlands 3 on Amazon and a Steam version of Borderlands 3. Guess which one comes in the form of a Steam key? Is that why the EU forbade country specific product pricing within the EU, forcing poorer countries, like Romania, to pay the same prices as the wealthier ones, like Germany?
Change means something's going to have to give, and giving is always painful. But after giving, comes give & take. A good market is built up of equals that are interdependant, not just dependant one-way. Good deals are made of win-win situations.
Also, from the same, linked policy: "It's OK to run a discount on different stores at different times as long as you plan to give a comparable offer to Steam customers within a reasonable amount of time." Nope. This policy is only about "Steam" keys, it's literally the title of the page! And the first section explicitly refers to the purchase of "steam keys."
Edit: Surprisingly, not even Wolfire's own case claims otherwise. But amusingly, they used Origin, GFWL(XBL/MS store?) and EGS' failure to reach Steam's popularity as evidence to the effects of this policy. Go figure...
The company “allegedly enforces this regime through a combination of written and unwritten rules” imposing its own conditions on how even “non-Steam-enabled games are sold and priced,” Coughenour wrote. “These allegations are sufficient to plausibly allege unlawful conduct.”
news.bloomberglaw.com/class-action/valve-loses-bid-to-end-antitrust-case-over-steam-gaming-platform are you a pirate? i can't believe you're talking about steam and don't know it's a common pratice for 3rd party stores to sell steam keys at a lower price then on steam.
What page? the one quoted by someone here? that has nothing to do with the rulling.
I'm really eager to see Wolfire's evidence, cause they've got a lot of shit to back up.
Someone that regular buys game can't be saying something so absurd with this much conviction
The Steam Key is often the only way for developers to access the market without creating their whole own ecosystem, infrastructure etc. Steam is the gatekeeper here, but it is inherently much more than that - it also defines how you sell your product. Steam doesn't own your product or your license, they're just supposed to handle digital distribution and take a cut for it. Not influence the way it is priced, either inside or outside the store. That's exactly the inequality that is at stake here. The component 'steam key' is of questionable relevance. Its just a means to an end.
And let's translate this to practice: say you can sell your own game for 40 bucks and make a solid margin. Now Steam takes 30% of the distribution cake. You can't sell your game on Steam for 40 bucks plus 30%. Steam is directly eating into your margins. Say you created an offline-only game ; Steam is nothing more than what you could do with a simple fileserver supported by some cheap ID-based game key security against piracy (effectively, that IS Steam's DRM too), but still eats 30%. Now, as a seller of your own product, you're unable to use the premier distribution channel in the market, that is trusted by consumers and well known, unless you're willing to hand in 30% of product's entire capacity to make buck. That is the equivalent of not being able to get your products 'on shelves' in any physical store but only through your own shitty webshop nobody knows, or by driving to your house in the middle of nowhere. This is where the market alternatives like EGS and Origin come in: do they offer somewhat similar access to the market, a similar 'premier' distribution channel? Of course not, because that is what Steam's dominant position underlines. So its pay the higher price, or die in obscurity.
That's pretty steep. Perpetual in this case is meaningless, because effectively, you're not allowed to price below Steam even though economically, common sense dictates you should because Steam offers comfort of life which can easily cost a bit extra. Games sell over long periods of time. How does Valve measure, and how does it enforce? Its a big black box. And how are you, sad little dev studio, going to fight big Valve based on that? This topic is a good example of the uncertainty related to Steam policies. Also, consider that Valve owns Steam's data. So there is also a power inequality in terms of transparency here, apart from what Valve chooses to offer, and it is the basis of store visibility, product placement, etc.
Its ratty, its filthy, and its exactly how these things work. The epiphany comes after seeing results - and the results are clear. Valve dominated, and it still does, and not just because it is 'better'. Its really not, its f'ing expensive and took its sweet time to present the so called fantastic featureset it has today. Other than that Steam is nothing more than a glorified shopping cart that drives your stuff home for you.
There's also the very simple scenario that Valve may just elect to not enforce the policy all the time or fail to do so.
Regardless, the text on the policy is clear: The steam keys that valve generates for the dev/publisher for free are not to be sold at a perpetually lower price elsewhere.
What one store or the other has listed doesn't change the implications of this policy, no more than a high count of petty theft does a state's penal code. Paragraphs 127 through 132 of the complaint (linked above) are about this policy. The part concerning the key price parity mentioned in the OP involves this policy. The only part where is not (directly) relevant is the one about the coupling of Steam as a platform and Steam as a store front (which I do agree with. The ruling I mean).
Edit: That's the thing, Wolfire's complaint doesn't really prove any illegal/anti-competitive activity carried out by Valve to this end. Most of their rhetoric is based on the price parity provisions, which only affect games distributed on Steam. It has zero effect on competing platform/store combos a la EGS and Origin.
That said, I do believe that Valve should decouple the platform from the store and be regulated so as not to have dominance in one be used to prop the other, same as any other digital store. But using the key policy to prove this necessity is illogical. At least, so long as they are provided at no cost to the dev while Valve is left covering all the hosting/servicing costs.
The policy in question doesn't allow someone selling the same game at Steam and EGS or GOG at different prices, it has nothing to do with steam key pricing, EGS and GOG don't deal with steam keys . You continusly quote "steam keys" when this obviously has nothing to do with steam keys, and their pricing is not enforced, not in one off cases, but ALL THE TIME, not on grey market stores but LEGIT STORES.
Please note: 1) The "Steam-Key-enabled games" wording, and 2) The cited policy and link at the footnote.
I honestly don't know of any policy that prohibits selling a game on EGS or GOG at different pricing, nor do I see one being cited to in this text. Care to point us at one?
"The Key Price Parity Provision is a policy that prohibits game developers from pricing their games cheaper on competing storefronts such as the Epic Games Store even if they offer lower fees"
EGS DOESN'T SELL STEAM KEYS.
edit (the rest of the quotes, i had to get away for a sec to do life stuff):
The judge noted that Valve "relies on provisions within Steamworks Documentation to impose conditions on how non-Steam-enabled games are sold and priced." and that "Valve also threatens game publishers with punitive action, including removal of their Steam-enabled games, if they sell non-Steam-enabled versions of those games at lower prices,"
The relevance though as I tried to explain earlier, is questionable. Steam-key-enabled or not, this is about market access and the freedom to determine your own price as a product owner. The distributor has no say in this, its ridiculous, because it only serves to further their own market share at the expense of customers that are already paying for a service.