Valve is set to face a £656 million lawsuit in the UK after a tribunal ruled that legal action over alleged unfair pricing practices on its Steam game store can proceed.

The Competition Appeal Tribunal in London decided that the case, which centres on claims of market dominance and excessive commissions, should be allowed to continue towards trial, rejecting arguments from Valve that it should not be certified at this stage.

The lawsuit was brought in 2024 by digital rights and children’s welfare advocate Vicki Shotbolt on behalf of up to 14 million people across the UK who have purchased PC games or additional content through Steam or other platforms since 2018. If successful, those users could be eligible for compensation.

Valve is accused of abusing its dominant position in the PC gaming market by imposing restrictive terms on publishers and effectively locking players into using Steam, the world’s largest distribution platform for PC games. The claim alleges that Valve “forces” publishers to agree to conditions that prevent them from selling games earlier or at lower prices on rival platforms.

It also argues that Valve requires players who buy a game on Steam to purchase all additional or downloadable content through the same platform, which Ms Shotbolt claims locks users into continuing to make purchases there. According to the claim, this behaviour has enabled Valve to charge an “excessive commission of up to 30%”, resulting in UK consumers paying more than they should for games and add-on content.

The case has been filed as a collective action, meaning a single claimant brings proceedings on behalf of a much larger group. In this instance, it represents millions of UK consumers who have bought games or in-game content over the past several years. The action is backed by legal firm Milberg London LLP, which specialises in group litigation against large companies.

Valve has argued that the case should not move forward, saying that the claim lacked sufficient detail on its commission structure and the impact of its platform parity clauses, and that it did not provide a workable way for Steam users, including minors, to identify themselves as part of the claim.

Recommended

• Apple Faces $1BN Lawsuit By UK Developers Over App Store Fees
• AI: Cyber Friend or Cyber Foe?
• Virgin Media O2 to Cut 2,000 UK Jobs Amid Decline in Customers

Despite these objections, the tribunal ruled that the legal action could continue. The case is the latest large-scale consumer claim to be approved in the UK, following similar proceedings against Apple over its App Store and Google over its Play Store, both of which also focus on commissions of up to 30%.

Valve also faces related legal pressure elsewhere. A separate consumer action was filed against the company in the US in August 2024, while another lawsuit brought by developers Wolfire Studios and Dark Catt Studios over Steam’s 30% cut has been ongoing since 2021.

Originally known for developing titles such as Half-Life, Valve launched Steam in 2003. The platform has since grown into the dominant marketplace for PC gaming worldwide.