Valve respond confusingly to European Commission region-locking complaint

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Earlier today, the European Commission released a statement claiming Valve and five other publishers may have worked together to breach EU international competition rules. The companies are accused of blocking the activation of Steam keys purchased from other nations, even if the purchase and activation locations are both EU member states.

 

It’s worth noting that the Statement Of Objections is just the European Commission’s preliminary findings, and there have been no legal penalties yet. If found in breach of anti-trust laws, the commission is capable of forcing the guilty parties to pay a fine of up to ten percent of their yearly turnover. Given that Valve is one of the parties named, that could be a very large number indeed, so I’m not surprised to see them trying to wriggle out of the charges immediately. It’s just unusual how they’ve chosen to do it. Valve’s statement takes a while to get to the point, but eventually they say:

“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.”

I’m not entirely sure what they think they’re arguing here. 3% of all games on Steam is not a small number, considering the sheer number of games sold on the store. That so many were in violation of EU law is rather significant, or so I think. I admit that I’m not a lawyer, but saying that only three in every hundred things you did may have been a crime is not the best argument in your favour. Following up the admission with the belief that this doesn’t apply anyway is even more bizarre.

Still, Valve say they acknowledge and feel they addressed the problem back in 2015, when they “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”. So, they lifted region restrictions except in the cases where they didn’t. While I can see the argument of restricting things from activation in Germany due to local laws, the argument on region licensing is somewhat shakier.

Valve end by further defending region locking, claiming that “elimination of region locks will also mean that publishers will likely raise prices in less affluent regions to avoid price arbitrage”. Again, I’m no lawyer, but this does not strike me as the greatest argument when you’re accused of breaking EU laws. It feels more like playing to a crowd of publisher shareholders and possibly nervous retailers (again, tied to the publishers) who might be spooked by the possibility of regulation and adherence to the law raising prices. I am eager to hear what the European Commission have to say in response. As for my take, I think RPS’s No Oceans stance sums it up well enough.

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Interstellar

Link for No Oceans goes to another site that wants to force you to turn off ad blocking. 
Fat chance!

Though discussing the demands from sites to not use ad blockers is going off topic, though mentioning that Rock Paper Shotgun articles demand it is relevant since that is one of the links in this article.


I hope they let feal Valve for it, its time that they pay, otherwise they will not change. 3% is not less and if you also think they are banning a hole country, thats definitly agains the EU law, because Germany is a part in EU and publishers like bethesda are only using geolock to sell in germany a cutted shit version for a higher price. Also Square Enix did the same with games that does not need any geolock for example Sleeping Dogs, they never released a patch in germany or any DLC. Kayne and Lynch was always region free now after 10 years they changed it to geolock.

Thats a no go for EU Countrys.


Planetary

While I can see the argument of restricting things from activation in Germany due to local laws [...]

I like how people who don't know German laws talk about German laws... There is no German law that prevents me from going to, let's say, the Netherlands, buy a retail copy of Wolfenstein, Sleeping Dogs, or any other banned game, bring it back to Germany, and play it at home. Or just go to www.amazon.nl and buy a digital download version of a game (Steam key). So, saying that they do that because of "local legal requirements (such as German content laws)" is outright wrong.

The German law only prohibits the selling and advertisement of banned games to minors. Region-locking the store page for costumers with a German IP would satisfy the law, and Steam already does that. However, region-locking the ability to play games that were bought in other EU member states is against the EU antitrust rules and has nothing to do with German laws.

Sadly, not many people know that, and just assume that Germany is a country where no one ever plays violent video games, that our government enforces censorship on its citizens and puts everyone in jail who owns a copy of a "banned" game. Before Steam, when video games were sold in colorful cardboard boxes, everyone I know played all those Dooms and Quakes. We imported them from Austria or the UK, which was, and still is, totally legal.


Galactic
DANpcg said:

While I can see the argument of restricting things from activation in Germany due to local laws [...]

I like how people who don't know German laws talk about German laws... There is no German law that prevents me from going to, let's say, the Netherlands, buy a retail copy of Wolfenstein, Sleeping Dogs, or any other banned game, bring it back to Germany, and play it at home. Or just go to www.amazon.nl and buy a digital download version of a game (Steam key). So, saying that they do that because of "local legal requirements (such as German content laws)" is outright wrong.

The German law only prohibits the selling and advertisement of banned games to minors. Region-locking the store page for costumers with a German IP would satisfy the law, and Steam already does that. However, region-locking the ability to play games that were bought in other EU member states is against the EU antitrust rules and has nothing to do with German laws.

Sadly, not many people know that, and just assume that Germany is a country where no one ever plays violent video games, that our government enforces censorship on its citizens and puts everyone in jail who owns a copy of a "banned" game. Before Steam, when video games were sold in colorful cardboard boxes, everyone I know played all those Dooms and Quakes. We imported them from Austria or the UK, which was, and still is, totally legal.

Buying a "banned" game in Germany is forbidden by law, but importing the same from other country is legal?

By the way, in the EU many identical goods have different prices in different countries and I am not convinced that this is just a matter of taxation.


Interstellar

By the way, in the EU many identical goods have different prices in different countries and I am not convinced that this is just a matter of taxation.

the best comment


With the theft of steam accounts region codes is a good thing, aside from that their is a sales market on steam not to be tampered with the values, if someone wants to try and cheat the market when their is a sale from another country, to try and get someone out of their nation to buy games for them for a low price to cheat the market, and pay them back later.  

I find it funny how they want to lie about how some people got, some video games they can't play over there that's in their steam account, and the origin of the game activation is in an USA IP address, Short story meaning they could just be game thieves. now they wanted to enforce a law they don't force on the people who live their, all valve had to do or employee's just label the games as sold only in this nation (name-here) That is like the USA forcing their laws on the EU so they can put every royal in jail for extortion charges, and all the police in the EU who helped with the extortion.

Trust me, more people want region coded games so people can't steal people's video game accounts and getaway with it.

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Solar
JavierGreen said:

By the way, in the EU many identical goods have different prices in different countries and I am not convinced that this is just a matter of taxation.

the best comment

+1


Resident Metal Head

I don't understand how region locking games is preventing competition. After reading a bit on EU competition laws, nothing I've read backs any legal action against Valve or the other companies for doing region locks. I'm no legal expert though, that's just from some brief reading.

 

Perhaps they're going on Article 102, saying Valve's practices are affecting trade between member states, but the simple fact is they still sell to all states directly as far as I know. In addition, they're not the only method of getting most games. There are plenty of third part key sellers available who don't always have the same region locks, thus Valve isn't really being anti competitive, or affecting the ability for anyone to get a product.

 

Edit: I hate region locks as much as anyone, especially since I can't gift games on steam to friends in the USA, just because I'm in Canada, and may pay 10 cents to a dollar or two less. However, I understand why it's done, and assume it's safe to say that although the majority of European States share the Euro for currency, it's value in each independent state is different. As a result, some states likely get reduced prices as a result of economical differences, and it's unfair for richer European States to try and take advantage.

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Ro Man said:

Buying a "banned" game in Germany is forbidden by law, but importing the same from other country is legal?

By the way, in the EU many identical goods have different prices in different countries and I am not convinced that this is just a matter of taxation.

Yes, for your only home its legal in private way, no commercial use or demonstration, but only games with nazi symboles are not alowed to be sold in germany. Sleeping Dogs for example has no hitler things and china mafia is nothing agains the german law but still its banned from square enix.

For example Wolfenstein can be bought legal in suiza or another country, if you use it for yourselfe (no childs) you can also buy it now uncut on switch with no issues in germany (the new wolfenstein game still banned in germany again lol). You always could import it legal on Console, just not on PC because of bethesdas geolocking, what is agains every law in germany. (free market its called here, buy from the country you like, no matter if its cheaper their or here, you can buy legal on china, thats why many germans use aliexpress) why someone should be forced to buy for his kids a peppa pig plush for 20€ when you can get the same one from chinese market for 3€? (and still not saying that $ is not € like developers are doing now)

I know newspaper tells always germany is a rich country, and yes, its true, but not every german or peoples who live in germany are politican, peoples here with family have usully 2 or 3 jobs, because they earn less money and have a lot of bills to pay, we have a lot of peoples with no work they earn as much as peoples in brasile, 347€ a month - electricity, phone, internet, so you can count how much they have to live.

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