Valve, the company that owns the Steam PC game distribution platform, is facing a hefty fine in the EU over their business practices. Specifically, how it restricts the sales of certain games to certain regions, and determines prices via country.
One of the major points of the European Union is what is known as “The European Single Market.” Effectively, this means that goods, services, capital, and people are allowed to cross freely between the EU member states. This is meant to ensure that online retailers can’t refuse EU customers their goods or services based on their country of residence. This is enforced by the European Commission, who do things like investigating Apple’s blocking of Microsoft’s xCloud.
Which is why the European Commission announced today that it is fining Valve and video game publishers Bandai Namco, Capcom, Focus Home, Koch Media, and ZeniMax a combined €7.8 million ($9.5 million USD). According to the release from the Commission, the companies bilaterally agreed to block certain games from being played outside of specific EU territories, and prevented people in EU countries from using Steam Keys bought in other EU countries. By doing so, Valve and the other publishers were violating European Union antitrust laws.
Bandai Namco had the smallest fine at €340,000, Capcom was fined €396,000 ($48,000), Focus Home had the largest fine at €2,888,000 (3,500,000), Koch Media was fined €977,000 ($1,180,000) ZeniMax was fined €1,664,000 ($2,000,000), and Valve itself was fined €1,624,000 ($1,960,00). It has yet to be seen how this investigation might affect Steam’s official launch in China.
Europe is a setting of many open world games, and this is an incredible win for video game players there. Before, Valve could practice price discrimination against users in specific countries by charging more based on where they lived. Hopefully, fear of getting fined again will convince Valve, Bandai Namco, Capcom, Focus Home, Koch Media, and ZeniMax to adopt more consumer friendly practices. Plus, events like the Lunar New Year Steam Sale date recently leaked might now be held in all regions.
On the other hand, this might just lead to increased game prices in all regions. Steam would often sell games in less affluent countries at cheaper prices. Valve blocking people from using Steam Keys bought outside of their countries was to stop people taking advantage of that by buying Steam Keys in regions where the games are cheaper. Since Valve can no longer block people from doing that, it might just raise the price of games to make them equal in all EU countries.
Source: The European Commission
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