Gabe Newell Required to Appear in Steam Monopoly Lawsuit: A Must-Read!

Gabe Newell Required to Appear in Steam Monopoly Lawsuit: A Must-Read!

Cellular Stockpile Tech Articles Leave a Comment

Gabe Newell tendrá que hacer acto de presencia en la demanda de Steam por monopolio

Today, we learn that the U.S. District Court has ordered Valve CEO Gabe Newell to make an in-person statement regarding the antitrust lawsuit the company is facing. It is worth noting that game studio Wolfire Games filed an antitrust lawsuit against Valve in April 2021, citing Steam’s anti-competitive practices.

Wolfire Games’ lawsuit indicated that Valve exploits its dominant position to “take advantage of publishers and consumers.” As you might imagine, this is all tied to something already quite familiar in Android and iOS mobile devices – commissions. Like Google and Apple’s platforms, Steam takes a 30% cut of all revenues generated by studios. Since Steam is the most important PC platform, a game’s success depends on being on this platform, which means having to pay those commissions.

Now Gabe Newell will have to defend himself against the monopoly lawsuit for Steam, Valve’s store.

The most interesting development comes from the lawsuit update. Specifically, the U.S. District Court for the Western District of Washington has requested Gabe Newell’s presence. In the past, Gabe had excused himself by agreeing to make a remote statement due to COVID concerns. Now, there are no excuses, and for his protection, all attendees will have to wear masks. Meanwhile, while Gabe Newell must remove his mask to speak, the rest of the participants are required to keep their masks on.

“Gabe Newell has submitted insubstantial evidence suggesting he faces a particularized risk of serious illness,” the Court stated. Consequently, he has been ordered to attend the statement in person.

With the order for all members to ensure COVID protocols and the lack of evidence justifying serious illness, Gabe Newell is required to be present at the trial.

Sony also faces a monopoly lawsuit

Unsurprisingly, Sony has also been affected by its PlayStation Store. In this case, Sony faces a lawsuit for $7.9 billion. Like other similar lawsuits, it is accused of monopoly and excessive pricing in the PlayStation Store. Interestingly, this lawsuit only covers the UK market.

If this lawsuit succeeds, it is logical to expect legal disputes to begin in the rest of the markets, accusing Sony of having a near-monopoly on digital sales on the platform. Of course, each of these sales yields a 30% commission, which for most studios is a significant portion of the pie.

Sony will need to appeal to the court to present its arguments and see if it can avoid paying the massive $7.9 billion imposed. Otherwise, if the plaintiff wins, Sony will have to pay compensation for damages between £67 and £562 to each British consumer who purchased a game on the PlayStation Store from August 19, 2016, to August 19, 2022.

The news about Gabe Newell having to make a personal appearance in the Steam monopoly lawsuit was first reported by El Chapuzas Informático.

Need Help?

Can't Find What Your Looking For? Just fill out our form and we'll ask our trusted distributors

Contact Cellular Stockpile.

Wholesale Inquiries Only.

Email Cellular Stockpile
Tel: | Whatsapp:

Leave a Reply

Your email address will not be published. Required fields are marked *