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

Seemingly the sole government body policing tech platforms, the ole’ 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.

“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 note, 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