Wednesday, January 20th 2021
European Commission Fines Valve, Five Game Publishers in €7.8 Million for Regional Pricing and Geo-blocking Practices
The European Commission has issued a fine to Valve and five game publishers (Bandai Namco, Focus Home Interactive, Capcom, Koch Media, and ZeniMax after an antitrust probe decided the companies violated EU antitrust laws. The Commission investigated regional pricing and geo-blocking practices that were put in place by valve and the hitherto fined publishers, and says that these rule-breaking pricing manipulations resulted from bilateral agreements between game publishers and Valve between 2010 and 2015, as well as from purpose-built licensing and distribution licenses between four out of five fined publishers between 2007 and 2018.
The European Commission found these practices to relieve "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". In particular, the offendants sold video game licenses relative to some 100 different titles at lower pricing in certain Eastern Europe countries, and which could not be activated in Western Europe. The fine's total amount of €7.8 million is shared between Valve (€1,624,000); Bandai Namco (10% fine reduction for cooperation, €340,000); Capcom (15% fine reduction for cooperation, €396,000); Focus Home Interactive (10% fine reduction for cooperation, €2,888,000); Koch Media (10% fine reduction for cooperation, €977,000), and ZeniMax (10% fine reduction for cooperation, €1,664,000). Valve didn't receive any fine reduction because the company elected not to cooperate with the Commission.Executive Vice-President Margrethe Vestager, in charge of competition policy, said in a statement:
Source:
European Commission
The European Commission found these practices to relieve "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". In particular, the offendants sold video game licenses relative to some 100 different titles at lower pricing in certain Eastern Europe countries, and which could not be activated in Western Europe. The fine's total amount of €7.8 million is shared between Valve (€1,624,000); Bandai Namco (10% fine reduction for cooperation, €340,000); Capcom (15% fine reduction for cooperation, €396,000); Focus Home Interactive (10% fine reduction for cooperation, €2,888,000); Koch Media (10% fine reduction for cooperation, €977,000), and ZeniMax (10% fine reduction for cooperation, €1,664,000). Valve didn't receive any fine reduction because the company elected not to cooperate with the Commission.Executive Vice-President Margrethe Vestager, in charge of competition policy, said in a statement:
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.Of course, while this money will come directly out of pocket from the convicted companies, what this does in practice is that these companies will likely no longer provide videogames at discounted prices for countries with lower purchasing power (and, one might argue, at pricing that better reflects those citizen's purchasing power, which as we all know, vary from country to country). If history has shown us anything is that companies will almost never take the road of lowering the purchase price towards the lowest bar, but the opposite, thus potentially turning games into luxury commodities that are only reserved for the few lucky enough to have been born in a country with a higher minimum wage.

35 Comments on European Commission Fines Valve, Five Game Publishers in €7.8 Million for Regional Pricing and Geo-blocking Practices
On that topic, I actually wanted to know the impact of this fine on the companies involved. Most of these companies are not publicly traded, but there's the Embracer Group that owns Koch Media (among other companies like Saber Interactive, THQ Nordic or Deep Silver). So I dug up the group's latest consolidated income statement (I couldn't find one for Koch Media), which you may findhere, which reports 283.3 million SEK of net profit (or almost 34 million USD). Considering the €977,000 fine (almost 1.2 million USD), that's around 3.5% of profit lost to a fine. I'm not saying it's a lot of money, but it's not as ridiculously low as someone assumed, considering those 34 million USD are the profit of the whole group that owns Koch Media among a bunch of other companies, and in theory this fine is for the transgression of just one of those companies. Suppose that every single one is guilty of the same thing and the fines piling up could make quite the number.
They can't have some fun in life... got it!
And low-cost or f2p games don't exist either.
Got it.
Same with devs/publishers blocking certain games from being accessed in XYZ country with certain "features" like where lootboxes are the main attraction/game loop are more or less banned in the Netherlands and Belgium. But that's obviously not their fault nor the country itself but Valve because reasons.
I'm more keen on seeing double taxation become the norm (as is so popular here in Sweden) because of communism and the Swedish people who support the idea (Arne Weise Syndrome as I like to call it), and obviously the state who wants more than just a piece of that pie. Gonna look forward to that 25+25% VAT + import tax on e-goods because potato. At least it won't ever get any more funny like as to why the Japanese prices are always so sky high due to the console manufacture monopoly policy (i.e Sony) of having total control hence why publishers are forced to jack up the prices or else, therefor "forcing" people to buy em cheaper from them instead.
I went to buy some buddies a game at Christmas they live in US I'm in Canada. Valve blocked it cause more than 1 dollar difference. Ridiculous.