During the seven year investigation, Valve cooperated extensively with the European Commission (“EC”), providing evidence and information as requested. However, Valve declined to admit that it broke the law, as the EC demanded. Valve disagrees with the EC findings and the fine levied against Valve.
The EC’s charges do not relate to the sale of PC games on Steam – Valve’s PC gaming service. Instead the EC alleges that Valve enabled geo-blocking by providing Steam activation keys and – upon the publishers’ request – locking those keys to particular territories (“region locks”) within the EEA.
Such keys allow a customer to activate and play a game on Steam when the user has purchased it from a third-party reseller. Valve provides Steam activation keys free of charge and does not receive any share of the purchase price when a game is sold by third-party resellers (such as a retailer or other online store).
The region locks only applied to a small number of game titles. Approximately just 3% of all games using Steam (and none of Valve’s own games) at the time were subject to the contested region locks in the EEA. Valve believes that the EC’s extension of liability to a platform provider in these circumstances is not supported by applicable law. Nonetheless, because of the EC’s concerns, Valve actually turned off region locks within the EEA starting in 2015, unless those region locks were necessary for local legal requirements (such as German content laws) or geographic limits on where the Steam partner is licensed to distribute a game. The elimination of region locks may also cause publishers to raise prices in less affluent regions to avoid price arbitrage. There are no costs involved in sending activation keys from one country to another, and the activation key is all a user needs to activate and play a PC game.
El Pit wrote on Jan 22, 2021, 08:53:
Apples/oranges. But since you want to compare the fossile fuels market to the entertainment industry (Steam) and the digital market and distribution: Do the US sell their own oil to poorer countries all over the world at a price that relates to the average wages in those countries? I highly doubt it. When it comes to games, though...![]()
Whatever. Valve will give in, the EU (as ONE market) is just too huge to be ignored.
Orogogus wrote on Jan 22, 2021, 00:33:El Pit wrote on Jan 21, 2021, 12:33:This sounds like the same whataboutism that the US uses to derail fossil fuel regulation -- what about all those countries in Africa that get to burn all the coal they want? The problem doesn't have to be addressed until everyone else is perfect.
If Steam wants to prove the EU (which is much more than just a trade union nowadays) wrong, they should start selling games at higher prices (excluding VAT) in richer US states and at lower prices in poorer US states - of course "state-locking" the prices. This might change the EU's mind, nothing else will do.
Average wage by states in the US is between $44-116K, or $44-76K if limited to the states. So worst-case 2.6 times between the lowest and highest, or 73% in the states. The average wage in the EU has a much wider spread, 6.4 times between Bulgaria and Iceland.
But I'm just looking at numbers. Are there any Blues readers from Eastern Europe or other lower wage countries in the EU? How does it actually work? Can people generally afford games, or does everyone just pirate their games?
drloser wrote on Jan 22, 2021, 01:36:
Average doesn't mean much. There are a lot more inequalities in the US than in the EU. You should compare median salary instead. And also remove the micro-countries.
Iceland is not in the EU.Yeah, I'm not sure why I said Iceland. I'm pretty sure I meant Denmark, since I was excluding Luxembourg due to the micro-country thing. My bad.
Looking at a few games currently discounted in the US (Code Vein, Resident Evil 3), it doesn't seem like the EU prices get discounted any more than the US prices. Does that really make them accessible in Eastern Europe?Orogogus wrote on Jan 22, 2021, 00:33:Almost all the games are heavily discounted a couple of months after their release date.
But I'm just looking at numbers. Are there any Blues readers from Eastern Europe or other lower wage countries in the EU? How does it actually work? Can people generally afford games, or does everyone just pirate their games?
Orogogus wrote on Jan 22, 2021, 00:33:Iceland is not in the EU.
The average wage in the EU has a much wider spread, 6.4 times between Bulgaria and Iceland.
Orogogus wrote on Jan 22, 2021, 00:33:Almost all the games are heavily discounted a couple of months after their release date.
But I'm just looking at numbers. Are there any Blues readers from Eastern Europe or other lower wage countries in the EU? How does it actually work? Can people generally afford games, or does everyone just pirate their games?
El Pit wrote on Jan 21, 2021, 12:33:This sounds like the same whataboutism that the US uses to derail fossil fuel regulation -- what about all those countries in Africa that get to burn all the coal they want? The problem doesn't have to be addressed until everyone else is perfect.
If Steam wants to prove the EU (which is much more than just a trade union nowadays) wrong, they should start selling games at higher prices (excluding VAT) in richer US states and at lower prices in poorer US states - of course "state-locking" the prices. This might change the EU's mind, nothing else will do.
Orogogus wrote on Jan 21, 2021, 03:00:It's already the case on Steam. There just one price in €. Example: https://steamdb.info/app/1091500/
Unless the bulk of EU revenues are coming from Slovenia or Romania, then why wouldn't you expect those lower prices to just go away, and everyone just gets stuck with the higher prices?
roguebanshee wrote on Jan 21, 2021, 04:14:Exactly. It's very clear that Valve is violating EU law by allowing for geo-blocking within the EU. It's just trying to weasel out of it by claiming it doesn't charge for the service and just allows other publishers to geo-block titles. It's like claiming that a getaway driver isn't part of the bank robbery because they were only helping transport the actual criminals and didn't take any money from the crime themselves.eRe4s3r wrote on Jan 21, 2021, 02:45:To me it just feels like the usual "But our corporation is special" type of spiel that you hear from any corporation asked to follow the law.
Valves statement is kinda hilarious, which part of "EU = single digital market" does Valve not understand?
eRe4s3r wrote on Jan 21, 2021, 02:45:To me it just feels like the usual "But our corporation is special" type of spiel that you hear from any corporation asked to follow the law.
Valves statement is kinda hilarious, which part of "EU = single digital market" does Valve not understand?
Orogogus wrote on Jan 21, 2021, 03:00:eRe4s3r wrote on Jan 21, 2021, 02:45:
Valves statement is kinda hilarious, which part of "EU = single digital market" does Valve not understand? That we can buy games cheaper in other EU countries is literally the point of it. We've been paying 20% more than everyone else for so long that it's only fair to show publishers what we really think of them....
Unless the bulk of EU revenues are coming from Slovenia or Romania, then why wouldn't you expect those lower prices to just go away, and everyone just gets stuck with the higher prices?
eRe4s3r wrote on Jan 21, 2021, 02:45:
Valves statement is kinda hilarious, which part of "EU = single digital market" does Valve not understand? That we can buy games cheaper in other EU countries is literally the point of it. We've been paying 20% more than everyone else for so long that it's only fair to show publishers what we really think of them....
Bill Borre wrote on Jan 20, 2021, 20:13:
I haven't seen a pic of Gabe for a few years. The last one I saw he looked like any fat guy and now he looks like Santa.![]()