Valve Corporation, the Bellevue-based company known for its popular digital distribution platform Steam, is facing a class-action lawsuit alleging that it has unlawfully monopolized the PC gaming market, according to documents filed Friday in U.S. District Court for the Western District of Washington.
The lawsuit, brought by plaintiffs John Elliott, Ricardo Camargo, Javier Rovira, and Bradly Smith, claims that Valve has used its market dominance to impose unfair pricing practices that have harmed both consumers and competition in the gaming industry.
The plaintiffs accuse Valve of charging excessive fees on game sales and in-game transactions, which inflated consumer prices.
Valve allegedly maintains its dominant PC gaming market by imposing restrictive agreements on game publishers.
These agreements, known as platform most-favored-nation clauses, prevent publishers from offering lower prices or better content on rival platforms.
According to the lawsuit, this practice stifles competition and forces consumers to pay higher prices for games and in-game products.
The plaintiffs argue that Valve’s practices have allowed the company to sustain a 30% commission on game sales through its Steam platform, a rate that they claim is far above what would be expected in a competitive market.
They also assert that Valve’s control over in-game payment processing further entrenches its monopoly, as the company requires all in-game transactions on Steam to be processed through its own payment system.
The lawsuit seeks public injunctive relief, damages, and an end to Valve’s alleged anti-competitive practices.
This case could have significant implications for the PC gaming industry, as it challenges the business practices of one of its most significant players.
The outcome may influence how digital distribution platforms operate and how prices are set for games and in-game content in the future.
KIRO 7 News has contacted Valve and asked for a response to the lawsuit. We will update this article when we hear back.