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The General Court Confirms that the Geo-blocking of Activation Keys for the Steam Platform Violates EU Competition Law

 

In agreeing bilaterally to that geo-blocking, the operator of the Steam platform, Valve, and five PC video game publishers unlawfully restricted cross-border sales of certain PC video games that are compatible with that platform.

 

According to Press Release No. 147/23 of September 27, 2023, the General Court (“Court”) has confirmed that the geographic blocking of activation keys for the Steam platform infringes EU competition law in Case T-172/21 | Valve Corporation v Commission (“Case”).

In decisions (“Decision”) dated January 20, 2021, the Commission (“Commission”) found that Valve, the operator of the platform, and five game publishers Bandai, Capcom, Focus Home, Koch Media, and ZeniMax had infringed EU competition law.

The Commission found that Valve and five publishers participated in a group of anti-competitive agreements or concerted practices aimed at restricting cross-border sales of certain PC video games compatible with the Steam platform by implementing territorial control functions in certain countries.

The General Court dismissed the case with this decision on September 28, 2023. As follows;

  • The General Court also found the existence of an agreement or concerted practice between Valve and each of the five publishers aimed at restricting parallel imports.
  • This geographical blocking aims to prevent video games distributed at low prices in certain countries from being purchased by distributors or users in other countries where prices are much higher.
  • The General Court also rules on the relationship between EU competition law and copyright. In particular, it observes that copyright is only intended to ensure the protection of the right to commercially exploit the marketing or making available of protected subject matter through the grant of a license to the right holders concerned in return for payment of a fee.

In short, Valve, the operator of the Steam platform, and five PC video game publishers had unlawfully restricted cross-border sales of certain PC video games compatible with this platform by mutually agreeing on geo-blocking. The General Court confirmed in these judgments that the geo-blocking of activation keys for the Steam platform violates EU competition law.

You can access the press release here.

You can access the full text of the Judgment here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr