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EU goes after Valve for ‘geo-blocking’ Steam activation codes


Seemingly the sole government body policing tech platforms, the ol’ European Union, is now taking aim at desktop gaming’s biggest storefront, Steam, and its creator Valve.

The commission sent a “Statements of Objections” to Valve and five other video game publishers, raising a fuss over the companies’ habits of “geo-blocking” purchases, i.e. prohibiting users from using game activation codes purchased outside their country of residence.

Furthermore, the suit takes aim at Bandai Namco, Focus Home, Koch Media and ZeniMax for coming to agreements with game distributors, including Valve, that prevented consumers in some EU member states from being able to download titles that were available in other regions.

The commission claims these companies’ actions are in breach of EU antitrust rules. The letter comes after the EU opened an investigation more than two years ago.

“In a true Digital Single Market, European consumers should have the right to buy and play video games of their choice regardless of where they live in the EU. Consumers should not be prevented from shopping around between Member States to find the best available deal. Valve and the five PC video game publishers now have the chance to respond to our concerns,” Commissioner Margrethe Vestager said in a statement.

As Valve’s multitude of online defenders have noted, there are some reasons why “geo-blocking” might make sense. Pushing regional sales can help game developers find audiences in new markets while keeping bread-and-butter markets paying full price to subsidize the rest. Keeping prices uniform across the globe can leave developers in a tricky position when it comes to finding the ideal price point.

It seems likely that these companies will look to make nice with the EU and keep their practice moving along elsewhere.

We have reached out to Valve for comment.

h/t: Owen Williams

 



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I'm a 50 year old PLC programmer from Burnley, UK. I severed my time as an electrician in the baking industry and soon got involved with the up and coming technology of PLC's. Initially this was all based in the Uk but as the years went by I have gradually worked my way around the globe. At first it was mainly Mitsubishi with a bit of Modicon thrown in but these days the industry leaders seem to be the Allen Bradley range of PLC and HMI’s.

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