The UK specialist competition tribunal has certified the £656m legal claim against Valve brought by children’s rights campaigner, Vicki Shotbolt. This marks a significant first victory for the class of around 14 million PC gamers against Valve – the owner of popular gaming platform, Steam.
The claim alleges that Valve has abused its dominant position in the PC gaming market under UK competition law by imposing excessive commission charges and anti-competitive restrictions on game developers selling gaming titles on the Steam platform.
These excessive commission charges are passed onto consumers by way of increased prices for PC games and in-game content.
Ms Shotbolt, the class representative, asserts that Valve’s conduct has increased the prices of games across the entire market. Therefore the class is not limited to Steam users but also includes purchasers of PC games and downloadable content on other gaming platforms and distribution channels.
The claim has been approved on an ‘opt-out’ basis, meaning that class members will be automatically included in the claim, unless they opt-out.
Following recent scrutiny of opt-out claims by the Supreme Court the Tribunal remarked that this is a “paradigm” case where an opt-out certification is appropriate, recognising that this “is a large class of consumers affected by an [alleged] breach of competition law resulting in their having to pay more for goods or services, but involving small sums for each individual which would make each individual case economically unviable”.
Vicki Shotbolt, the Class Representative for the claim, said:
“This is an important moment for any gamer who has purchased a Steam enabled game. That includes millions of gamers who have been impacted by the unfair practices that have resulted in them being overcharged. This is an opportunity for them to get redress and for this major platform to realise that when they act unlawfully, they will be challenged.”
Natasha Pearman, the partner leading the litigation and head of competition litigation at Milberg London LLP, said:
“We’re delighted that the Tribunal has granted certification of Vicki’s claim and the acknowledgment that this is a “paradigm” example of an opt-out collective action. The judgment provides further clarity on a number of key issues related to the opt-out regime, such as the process to secure competitive funding terms and the application of the Pro-Sys test. Securing certification is an important first step, we now look forward to working closely with Vicki as we progress this case to trial.”
Ayse Yazir, Managing Director, Bench Walk Advisors, said:
“Congratulations to Vicki Shotbolt and the entire legal team on securing certification, we’re delighted to be funding this important collective action.”
About the claim
Anyone who has purchased PC games or add-on content in the UK between 4 June 2018 to 4 June 2024, is automatically included and potentially entitled to compensation if the case is won. Consumers are encouraged to sign-up at https://steamyouoweus.co.uk/ to be kept up to date on the case.
Collective proceedings involve a claim brought by a class representative on behalf of a defined group of persons who have suffered loss as a result of a breach of competition law. There is no guarantee that compensation will be made available in the future – the case must first be won in the Competition Appeal Tribunal, unless an earlier settlement is agreed.
About Vicki Shotbolt
Vicki is a leading campaigner for children’s digital rights, with over 20 years of senior leadership experience in national charities. She is the founder and CEO of Parent Zone, an organisation that works with families and global brands to improve the lives of children in today’s digital world.
She also chairs FairFun, a charity that runs events for disabled children, and sits on the executive board of the UK Council on Child Internet Safety. Previously, Vicki was the Deputy CEO at the National Family and Parenting Institute, and has written on subjects including marketing directly to children and service families.
About the legal team
Ms Shotbolt has instructed competition litigation specialists, Milberg London LLP, and Julian Gregory and Will Perry of Monckton Chambers.