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The European Commission has issued a fine to Valve and five game publishers (Bandai Namco, Focus Home Interactive, Capcom, Koch Media, and ZeniMax after an antitrust probe decided the companies violated EU antitrust laws. The Commission investigated regional pricing and geo-blocking practices that were put in place by valve and the hitherto fined publishers, and says that these rule-breaking pricing manipulations resulted from bilateral agreements between game publishers and Valve between 2010 and 2015, as well as from purpose-built licensing and distribution licenses between four out of five fined publishers between 2007 and 2018.
The European Commission found these practices to relieve "European consumers of the benefits of the EU Digital Single Market and of the opportunity to shop around for the most suitable offer in the EU". In particular, the offendants sold video game licenses relative to some 100 different titles at lower pricing in certain Eastern Europe countries, and which could not be activated in Western Europe. The fine's total amount of €7.8 million is shared between Valve (€1,624,000); Bandai Namco (10% fine reduction for cooperation, €340,000); Capcom (15% fine reduction for cooperation, €396,000); Focus Home Interactive (10% fine reduction for cooperation, €2,888,000); Koch Media (10% fine reduction for cooperation, €977,000), and ZeniMax (10% fine reduction for cooperation, €1,664,000). Valve didn't receive any fine reduction because the company elected not to cooperate with the Commission.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said in a statement:
Of course, while this money will come directly out of pocket from the convicted companies, what this does in practice is that these companies will likely no longer provide videogames at discounted prices for countries with lower purchasing power (and, one might argue, at pricing that better reflects those citizen's purchasing power, which as we all know, vary from country to country). If history has shown us anything is that companies will almost never take the road of lowering the purchase price towards the lowest bar, but the opposite, thus potentially turning games into luxury commodities that are only reserved for the few lucky enough to have been born in a country with a higher minimum wage.
View at TechPowerUp Main Site
The European Commission found these practices to relieve "European consumers of the benefits of the EU Digital Single Market and of the opportunity to shop around for the most suitable offer in the EU". In particular, the offendants sold video game licenses relative to some 100 different titles at lower pricing in certain Eastern Europe countries, and which could not be activated in Western Europe. The fine's total amount of €7.8 million is shared between Valve (€1,624,000); Bandai Namco (10% fine reduction for cooperation, €340,000); Capcom (15% fine reduction for cooperation, €396,000); Focus Home Interactive (10% fine reduction for cooperation, €2,888,000); Koch Media (10% fine reduction for cooperation, €977,000), and ZeniMax (10% fine reduction for cooperation, €1,664,000). Valve didn't receive any fine reduction because the company elected not to cooperate with the Commission.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said in a statement:
Of course, while this money will come directly out of pocket from the convicted companies, what this does in practice is that these companies will likely no longer provide videogames at discounted prices for countries with lower purchasing power (and, one might argue, at pricing that better reflects those citizen's purchasing power, which as we all know, vary from country to country). If history has shown us anything is that companies will almost never take the road of lowering the purchase price towards the lowest bar, but the opposite, thus potentially turning games into luxury commodities that are only reserved for the few lucky enough to have been born in a country with a higher minimum wage.
View at TechPowerUp Main Site
