[ad_1]
Valve Inc. finds another lawsuit on its desk as a putative class action lawsuit filed earlier this week alleging that the video game giant is abusing Steam by forcing developers to sell their games for the same price on all platforms an once it enters the PC game distributor’s store.
The lawsuit, spotted by The Hollywood Reporter and handled by attorneys at Ohio-based law firm Vorys Sater, says Valve’s “Most Favored Nations” clause in its Steam distribution agreement requires developers to agree that ” the price of a PC game on the Steam platform will be the same as game developers sell their PC games on other platforms. “Lawyers note that Valve is abusing the MFN clause by preventing other platforms – such as the Epic Games Store, itch.io, and Microsoft Store – to compete with Steam.
“The Steam MFN also hinders innovation by creating an artificial barrier to entry for platforms,” the lawsuit says. “When a market like this is highly concentrated, a new entrant can benefit consumers by undercutting the incumbent’s prices. The ability to deliver PC games to consumers at lower prices is one way for a business or new entrant to gain market share. If this market worked well – that is, if the Steam NPF did not exist and the platforms could compete on price – Steam’s competing platforms would be able to provide the same margins (or plus) to game developers while simultaneously offering prizes to consumers. “
The lawsuit focuses on game developers and consumers, as it notes that Valve’s Steam is the “dominant platform for game developers to distribute and sell PC games” to people. Due to the ubiquity of Steam, lawyers seek to disrupt the Steam market in order to make the distribution and sale of PC games more fair for manufacturers and gamers.
This lawsuit comes shortly after Valve Inc. was accused of tearing up a patent the company ended up implementing in its now-abandoned steam controller.
[ad_2]
Source link