Valve Faces Class Action Lawsuit Over Steam
The antitrust lawsuit filed against Valve by Wolfire Games, the developer of Overgrowth, in 2022 has been approved as a class action lawsuit. The ruling could spell big trouble for Valve. The lawsuit has now been expanded to include not just Wolfire and Dark Catt Studios, who previously filed a similar lawsuit, but everyone who has sold games on Steam since 2017.
Valve Accused of Unfair Competition
Wolfire claimed in its original lawsuit that Valve used its dominant position in the PC gaming market to stifle competition and take an unfairly high share of sales made through Steam. The lawsuit was initially dismissed, but Wolfire was given the opportunity to revise and refile his complaint. In 2022, Wolfire was able to revive the lawsuit, and it was consolidated with a similar lawsuit filed by Dark Catt Studios.
The class action status challenges Valve’s 30% share of sales made through Steam (which drops to 20% as sales increase). Valve defends this as the industry standard, but the fact that rival platforms such as the Epic Games Store and Microsoft Store only receive a 12% share calls Valve’s share into question.
Although the case will take time to conclude, if Wolfire and the other plaintiffs win, Valve could be required to pay a large amount of compensation. This could lead the company to rethink its revenue sharing policies on Steam.
Experts point out that this class action lawsuit is examining the business models of digital game stores and their relationships with game developers. It is stated that the case could have consequences that could affect not only Valve, but the entire gaming industry.
This legal process initiated by Wolfire and now turning into a class action has the potential to have serious consequences for Valve and Steam. It is useful to follow this case closely, which questions the balance of power in the gaming industry and the role of digital stores.
