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Valve and others fined by the European Commission for 'geo-blocking'
Liam Dawe · news.movim.eu / GamingOnLinux · Wednesday, 20 January, 2021 - 15:43 · 1 minute
The European Commission just announced that they've now issued formal fines against Valve, Bandai Namco, Capcom, Focus Home, Koch Media and ZeniMax for breaching their antitrust rules. An investigation that has been going on for some time now since early 2017, and certainly not the first fine Valve has dealt with for breaking some rules here.
What's the deal? The EU say that Valve and the others restricted cross-border sales on the basis of their location inside the European Economic Area (‘EEA'). To put it simply: Valve allowed certain developers and publishers to block keys being redeemed in one country, that were purchased in another (where it might have been cheaper). Out of all those named, Valve is the only company that did not cooperate with their investigation and so they got slapped a lot harder.
The EU Commission made this handy chart for the issue:
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: "More than 50% of all Europeans play video games. The videogame industry in Europe is thriving and it is now worth over € 17 billion. Today's sanctions against the "geo-blocking" practices of Valve and five PC video game publishers serve as a reminder that under EU competition law, companies are prohibited from contractually restricting cross-border sales. Such practices deprive European consumers of the benefits of the EU Digital Single Market and of the opportunity to shop around for the most suitable offer in the EU".
The fines:
Company | Reduction for cooperation | Fine (€) |
Bandai Namco | 10 % | 340 000 EUR |
Capcom | 15 % | 396 000 EUR |
Focus Home | 10 % | 2 888 000 EUR |
Koch Media | 10 % | 977 000 EUR |
ZeniMax | 10 % | 1 664 000 EUR |
Valve | 0% | 1 624 000 EUR |
For a company as big as Valve (and the likes of ZeniMax), they won't be losing any sleep over fines that for them will most likely be a drop in the ocean. Valve especially, as the Steam store pretty much prints money for them.
You can see the full announcement here .