Valve, the company behind the dominant PC gaming platform Steam, faces increasing legal and public pressure over it’s business practices. A $900 million antitrust lawsuit in the UK alleges Steam leverages its market position to overcharge gamers[[1]].Now, Epic Games CEO Tim Sweeney is intensifying criticism, arguing Valve’s policies regarding microtransactions and commissions are “illegal”[[2]], and further challenging the platform’s established dominance.
Steam has become a primary driver for gamers choosing PC platforms, establishing itself as the dominant digital storefront and fostering a rapidly growing community of tens of millions of players. Despite competition from Epic Games’ Store and other digital marketplaces, Steam maintains a significant lead in popularity. Now, Valve is facing renewed scrutiny as Epic Games CEO Tim Sweeney alleges Steam’s handling of microtransactions is unlawful, potentially leading to a lawsuit in the United Kingdom.
Epic Games is widely known as the creator of the Unreal Engine, a leading graphics engine, and the hugely popular online game Fortnite. While Epic excels in these areas, its own storefront has yet to surpass Steam in market share. Valve launched Steam over 20 years ago, and its continued growth has made it a difficult competitor to dislodge. In fact, Steam has consistently seen increases in both player numbers and total hours played.
Tim Sweeney, CEO of Epic Games, claims Valve continues to employ illegal practices regarding microtransactions and Steam Wallet payments
With over 40 million concurrent users active on Steam as of early 2024, Valve continues to dominate the PC gaming landscape. Despite Epic’s efforts, including annual free game giveaways, Steam remains the platform of choice for many. Even exclusive titles offered through the Epic Games Store haven’t been enough to significantly impact Steam’s position or sales figures. This ongoing competition highlights the challenges of disrupting established platforms in the digital distribution space.
Tim Sweeney has decided to reignite criticism of Valve’s microtransaction practices on Steam. Sweeney argues that developers selling games on Steam are required to use Valve’s API, forcing players to use the Steam Wallet for purchases without alternative payment options. This practice is coming under increased scrutiny as regulations in the UK and EU prioritize user flexibility. A $900 million antitrust lawsuit against Valve over Steam policies is currently underway in the United Kingdom.
Epic CEO leverages upcoming antitrust lawsuit to challenge Valve’s practices
Sweeney is capitalizing on the momentum of the UK antitrust case to further criticize Valve, alleging that the company maintains high commission rates and pricing policies that he deems illegal. He cited the scrutiny faced by Google and Apple over their app store commissions as a point of comparison, arguing that Valve has avoided similar criticism. Sweeney also pointed to Valve’s “most favored nation” price parity policy, which restricts developers from offering their games at lower prices on other platforms. This means developers must not only pay the 30% sales commission to Steam but also cannot sell their games for less elsewhere.
According to Sweeney, these policies are detrimental to the video game industry, inevitably leading to higher game prices. Developers seek to maximize profits, and publishers aim to recoup costs, a cycle he believes is unsustainable. Epic Games, in contrast, offers a 12% commission rate and allows developers to retain 100% of revenue—with no commissions—until they reach $1 million in annual net revenue. This move underscores Epic’s strategy to attract developers by offering more favorable financial terms.
