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Court rules Gabe Newell must appear in person to testify in Steam anti-trust lawsuit
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this post was submitted on 25 Nov 2023
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I was under the impression that the policy required a game's price to be the same on all marketplaces, even if it's not a steam key being purchased. I.e. a $60 game on steam must sell for $60 off-platform, including on the publisher's own launcher.
I just went to double check my interpretation, but the case brief by Mason LLP's site doesn't really specify.
If it only applies to steam keys, as you say, then I agree they don't really have a case since it's Steam that must supply distribution and other services.
But, if the policy applies to independent marketplaces, then it should be obvious that it is anticompetitive. The price on every platform is driven up to compensate for Steam's 30% fees, even if that particular platform doesn't attempt to provide services equivalent to Steam.
According to a Valve quote from the complaint (p. 55), it applies to everything:
Thanks, that clears it up. So yeah, I think Wolfire has a case to make, then.
What right does valve have to discriminate against devs and publishers who are selling their game on other platforms? They have to compete for their business, not punish them for having a game that is more successful on another store that gives a higher revenue cut to the dev and a lower price to the customer.
I think the reason why valve is doing this is because people might buy a game at a higher price, either on Steam or another storefront, and then complain that it was cheaper on Steam or another storefront and start demanding refunds or demand that Valve reduce the game's price on steam.
What do you do then?
If you don't address it, you're automatically seen as the asshole even if it was the developer's choice.
You can give out refunds, which makes you look like the good guy, but that also looks bad to companies like Visa or PayPal (my understanding is that large numbers of refunds tend to look bad to payment processors, even if the refund was initiated from the company and not the consumer). Granted, Valve is a big enough company that they shouldn't have issues with that kinda thing, especially since they already offer refunds, but my understanding is that it still doesn't look good to payment processors and can make them upset.
You can ask the developer to reduce the price on steam, but what if the dev says no?
You can force the dev to reduce the price, but now you're even more of an asshole.
You can lower the cost on your storefront and cover the difference yourself, but now you're potentially losing money. That, if I'm not mistaken, is actually anti-competative from a legal standpoint.
You're kinda screwed if you're trying to be the good guy.
That's not even getting into how bad it looks if it's cheaper on steam than somewhere else when you have a marketshare as large as Valve's.
So what? Who cares if it "looks bad"? They have to compete on service. They need to find out why devs want to sell on steam at a higher price.
If other platforms want to compete in ways that make prices lower for customers lower for customers, so be it.
They usually sign an exclusivity deal in exchange for funding the development of the game. David is alleging that steam pressured him in ways not covered by steam ToS. It's not like valve funded development of receiver.
Yes, that is problematic. Not by itself, but coupled with a large captive userbase it is. As an example:
Let's say you want to start a game marketplace, which simply runs a storefront and content distribution—you specifically don't want to run a workshop, friends network, video streaming, or peer multiplayer. Because you don't offer these other services, you keep costs down, and can charge a 5% fee instead of a 30%.
With Steam's policy, publishers may choose to:
Obviously, pricing is much more sophisticated than this. You'd have to account for change in sales volume and all. Point is, though, that publishers (and consumers!) cannot take advantage of alternative marketplaces that offer fewer services at lower cost.
The question the court has to answer is whether the userbase/market share captured by Steam causes choice (2) to be de-facto necessary for a game to succeed commercially. If so, then the policy would be the misuse of market dominance to stifle competition.
And I think Wolfire might be able to successfully argue that.
Steam runs weekly deals and daily sales all the time. I doubt they have to check with gog.
This... misses the point? Of course the can not sell on Steam. That's always an option.
The antitrust aspect of all of this is that Steam is the de-facto marketplace, consumers are stubborn and habitual and aren't as likely purchase games less-known platforms, and that a publisher opting not to sell on Steam might have a negative influence on the games success.
If that consumer inertia gives Steam an undue advantage that wouldn't be present in a properly competitive market, then it there is an antitrust case to be made, full stop. At this point, the court will decide if the advantage is significant enough to warrant any action, so there's really no need for us to argue further.
But I really don't like seeing Wolfire—which is a great pro-consumer and pro-open-source studio—having their reputation tarnished just because Lemmyites have a knee-jerk reaction to bend over and take it from Valve just because Steam is a good platform.
As I said, no need for us to argue further. The lawsuit has grounds, even if you don't understand why. Read articles and legal briefs on the matter if you would like to learn more.
Oh ok
This is kind of necessary. You could open a store just selling Steam keys. You get Steam's software distribution, installed user base, networking for free and pay nothing to them. Steam is selling all of those services for a 30% cut. Since your overhead is $0, you can take just a 1% fee and still turn a profit because Valve is covering 99% of your costs.
Steam could disable keys or start charging fees for them. As long as they're being this ridiculously generous and permitting publishers to have them for free, some limitation makes sense.
I'm dubious, though. There must be a provision for promotional pricing. I've definitely bought keys for less than Steam prices.
As I said, Steam would be in their rights to enforce that pricing policy for Steam keys, because they provide distribution and platform services for that product after it sells.
But as @Rose clarified, it applies to not just Steam keys, but any game copy sold and distributed by an independent platform. Steam should not have any legitimate claim to determining the pricing within another platform.
David said in a blog post that the suit is specifically alleging price fixing tactics for other platforms that aren't key sellers, but sell the whole game. Whether that holds up in court - we will see.