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Developers Join Forces Against Steam in Class-Certified Antitrust Lawsuit

By  |  December 2, 2024

The legal battle against Valve Corporation, the company behind the popular digital distribution platform Steam, has entered a new phase with a U.S. court granting class certification to the lawsuit. Initially filed in 2021 by Wolfire Studios and Dark Catt Studios, the case now broadens its scope to include all developers, publishers and individuals who have paid Steam’s 30% revenue share for purchases since January 28, 2017, according to Benzinga.

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    The decision, handed down by United States District Judge Jamal N. Whitehead, significantly expands the potential reach of the lawsuit. As outlined in court documents cited by GamesIndustry.biz, the plaintiffs accuse Valve of violating several antitrust laws, including Washington’s Consumer Protection Act, by allegedly inflating costs for consumers and imposing financial burdens on game publishers. The plaintiffs are seeking remedies on behalf of the newly certified class to address these claimed damages.

    Related: Valve Hit with New Class Action Suit Over Anticompetitive Practices in PC Gaming Market

    Valve Faces Allegations of Market Dominance

    At the heart of the lawsuit is Valve’s alleged dominance in the PC game distribution market. Expert witness Dr. Steven Schwartz has presented testimony describing Valve as a monopolistic force within the industry. Per Benzinga, Valve challenged Schwartz’s analysis, criticizing his methods as flawed and his assumptions as unsubstantiated. Despite this, the court denied Valve’s motion to exclude Schwartz’s testimony, keeping his findings integral to the proceedings.

    The certification allows Wolfire Studios and Dark Catt Studios to act as class representatives, paving the way for other developers and publishers to join the suit. This marks a pivotal moment in the case, increasing scrutiny on Valve’s revenue-sharing policies and potentially uniting various stakeholders within the gaming industry under a single legal cause.

    Implications for the Gaming Industry

    The case highlights ongoing concerns about market concentration in the digital gaming sector, where Steam has long maintained a dominant position. Rival platforms such as the Epic Games Store have attempted to challenge Steam’s foothold, but Valve’s policies, including its 30% revenue cut, have remained a focal point for criticism. According to Benzinga, the lawsuit’s outcome could set critical precedents regarding how revenue-sharing models and platform policies are regulated in the future.

    Source: Benzinga