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Valve Lawsuit Overview:
- Who: Video game developer Valve Corporation argues class action lawsuit filed by gamers should move to arbitration
- Why: Gamers sued Valve Corporation for allegedly monopolizing the PC gaming market by forcing users to pay 30 percent commissions on its Steam platform, but Valve argues gamers waived their right to a trial by signing a subscriber agreement
- Where: The case is being heard in a federal court in Washington state
Video game developer Valve Corporation has called on a Washington federal court to move a class action lawsuit it is facing into arbitration, saying that the gamers who filed the Valve lawsuit waived their right to a trial by signing the subscriber agreement.
Valve is facing a class action lawsuit from gamers for allegedly monopolizing the PC gaming market by forcing users to pay 30 percent commissions on its Steam platform.
However, Valve argued to the court that the gamers had not only waived their rights to a trial, but had also failed to show the developer had broken any antitrust laws, saying that the gamers were attacking a popular service in a competitive market, Law360 reports.
The first of the consolidated claims against Valve was filed in January, alleging that the company monopolized its position in the market with a provision in its terms stopping developers from selling their games elsewhere for a better price.
Then a second claim was filed by video game publisher Wolfire Games LLC and two gamers who alleged that Valve forces developers to limit game distribution and pay exorbitant commission rates.
Earlier this month, the plaintiffs consolidated their suits and added that Valve forces game developers to make their games compatible with the Steam Store, which is the largest platform in the world for PC games, and pay the 30 percent commission in order to have success with their games.
Seven of the eight plaintiffs in the consolidated Steam lawsuit signed Valve’s Steam Subscriber Agreement, according to Law360, which says “all disputes and claims” must be put to arbitration. That clause was affirmed earlier this year by the Ninth Circuit.
Wolfire didn’t sign the agreement, but Valve said in this week’s motion for dismissal Wolfire’s claims should have to wait until arbitration had played out.
Valve also said in the motion that its free “Steam Keys” program, which provides codes that any third-party PC desktop game distributor can use on the Steam platform, did not stifle competition as the gamers claim, Law360 reports.
“Plaintiffs allege no unlawful conduct in Valve’s creation and granting of Steam Keys to developers,” Valve said. “On the contrary, Steam Keys are a free accommodation to game developers enabling them to supply Steam access with games they sell or give away outside of Steam, and pay nothing to Valve.”
Steig Olson of Quinn Emanuel Urquhart & Sullivan LLP, a lawyer for one of the groups of plaintiffs, told Law360: “We disagree with Valve’s arguments and look forward to responding in full at the appropriate time.”
Do you think the gamers should have their class action moved to arbitration? Let us know your thoughts in the comments section!
The Escobar plaintiffs are represented by Alicia Cobb, Steig D. Olson, David D. LeRay, Shane Seppinni, Adam B. Wolfson; and Charles B. Stevens of Quinn Emanuel Urquhart & Sullivan LLP.
Wolfire is represented by David D. Golden, A. Owen Glist, Ankur Kapoor and Jeffrey I. Shinder of Constantine Cannon LLP.
Plaintiffs led by consumer Sean Colvin are represented by Thomas N. McCormick, Kenneth J. Rubin, Timothy B. McGranor and Kara M. Mundy of Vorys Sater Seymour and Pease LLP.
Valve is represented by Gavin W. Skok, Laura P. Hansen and Kristen W. Broz of Fox Rothschild LLP; and Charles B. Casper of Montgomery McCracken Walker & Rhoads LLP.
The Valve Antitrust Class Action Lawsuits are Colvin et al. v. Valve Corp. et al., Case No. 2:21-cv-00650, and Wolfire Games LLC et al. v. Valve Corp., Case No. 2:21-cv-00563, in the U.S. District Court for the Western District of Washington.
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6 thoughts onVideo Gamers Waived Rights to Trial, Claims Valve in Plea to Move Steam Antitrust Class Action to Arbitration
Add me. I had to be added to 3 separate steam account s one for each child. And weird thing is they kept getting hacked by people in Germany but Steam made me but all games over again there was nothing they could do they said. I said scam
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This suit is dumb and honestly seems like a scam. It’s just people that want free money. Valve has never charged the user this mythical 30% commission. Developers and publishers have to give a 30% cut of sales which is the industry standard. Don’t blame valve because their competitors have vastly inferior platforms. And if people want to talk anti-consumer look no further than epic games buying exclusively for their dog platform. Valve also does not dictate prices, sale or otherwise, it’s on the developers/publisher to set prices. All I see is scammers, vultures looking for a quick buck, and technologically illiterate people both yelling loudly about things they don’t understand and being taken advantage of by these lawyers. And anyone complaining about hacked accounts doesn’t have a foot to stand on in this day and age with 2 factor security. Anyone not using 2 factor deserves to be “hacked” with their relatively simple passwords.