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  3. Why is Valve being sued for almost $900 million, but Epic Games wasn't sued when they bought Rocket League and Fall Guys to remove them from steam?

Why is Valve being sued for almost $900 million, but Epic Games wasn't sued when they bought Rocket League and Fall Guys to remove them from steam?

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  • S This user is from outside of this forum
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    squaresinger@lemmy.world
    wrote last edited by
    #120

    You have to differentiate between a monopoly in economics and a monopoly in law.

    In economics a monopoly is the only seller of a good with no other competition. If I am the only one who owns apple trees, I got a monopoly on apples.

    In law a monopoly is someone who owns so much of the market that they can charge unfair prices. If I am the only one who owns large orchards full of the best kind of apple trees, it doesn't really matter to me that someone else has a couple mediocre trees in their backyard. I am not a economics-monopoly, since someone else is also selling apples, but I hold enough of the market that I can set the price to whatever I want.

    (Ok, the analogy isn't perfect, but you get it, I hope. Basically the "excess market power" thing you talked about is the legal definition of a monopoly.)

    Customers don't necessarily need to be end customers. If steam is charging their business customers too much, that counts too. (It also affects the end customers too, btw.)

    So the question is: If I don't release a game on steam, will that cause it to underperform significantly? If so, does steam charge a lot above market price? If both of these questions are answered with yes, a lawsuit could be successful.

    B 1 Reply Last reply
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    • SternS Stern

      If they didn't have fortnite and unreal engine money propping them up it would have closed by now. Hasn't been profitable since it opened in 2018.

      S This user is from outside of this forum
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      skunkworkz@lemmy.world
      wrote last edited by
      #121

      If they didn’t have Fortnite they probably wouldn’t even have the money to dump into Unreal Engine to make it where it is today. They probably would ask Tencent for more money and Tencent would have bought the rest of the company. The game engine business is just not as profitable as Fortnite, just look at Unity.

      1 Reply Last reply
      3
      • S squaresinger@lemmy.world

        You have to differentiate between a monopoly in economics and a monopoly in law.

        In economics a monopoly is the only seller of a good with no other competition. If I am the only one who owns apple trees, I got a monopoly on apples.

        In law a monopoly is someone who owns so much of the market that they can charge unfair prices. If I am the only one who owns large orchards full of the best kind of apple trees, it doesn't really matter to me that someone else has a couple mediocre trees in their backyard. I am not a economics-monopoly, since someone else is also selling apples, but I hold enough of the market that I can set the price to whatever I want.

        (Ok, the analogy isn't perfect, but you get it, I hope. Basically the "excess market power" thing you talked about is the legal definition of a monopoly.)

        Customers don't necessarily need to be end customers. If steam is charging their business customers too much, that counts too. (It also affects the end customers too, btw.)

        So the question is: If I don't release a game on steam, will that cause it to underperform significantly? If so, does steam charge a lot above market price? If both of these questions are answered with yes, a lawsuit could be successful.

        B This user is from outside of this forum
        B This user is from outside of this forum
        bryndos
        wrote last edited by bryndos@fedia.io
        #122

        UK law basically doesn't use the term.

        My point was that proving dominance and abuse is rarely objective fact. It sure isn't showing market share and that some games companies go out of business. They have to show the things that valve does to restrict competition - being popular isn't enough alone.

        Your last question is quite a good example of how hard it is to prove because it includes counterfactual comparisons.

        This might be why it seems (if the journo is to be believed) that they're going down the tie-ins angle for the DLC, not necessarily headline pricing. Thou the latter would probably a worse outcome for valve if guilty.

        1 Reply Last reply
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          cavemanfreak@programming.dev
          wrote last edited by
          #123

          They were mentioned in a recent Youtube video by Bellular News. I haven't read more about it myself.

          S 1 Reply Last reply
          0
          • S skisnow@lemmy.ca

            I'm still bitter at Steam for taking a bunch of my single-player games off me that I'd already paid for when I moved to another country, and refusing to refund me because I'd already played 10 hours. Also the support guy treated me like I was a criminal for even trying.

            A This user is from outside of this forum
            A This user is from outside of this forum
            aljernon@lemmy.today
            wrote last edited by
            #124

            Did they explain why moving to another country ment anything?

            N F 2 Replies Last reply
            5
            • S skisnow@lemmy.ca

              I'm still bitter at Steam for taking a bunch of my single-player games off me that I'd already paid for when I moved to another country, and refusing to refund me because I'd already played 10 hours. Also the support guy treated me like I was a criminal for even trying.

              A This user is from outside of this forum
              A This user is from outside of this forum
              aljernon@lemmy.today
              wrote last edited by
              #125

              Did they explain why moving to another country ment anything?

              1 Reply Last reply
              0
              • F firmdistribution@lemmy.world

                Seems like buying games to remove them from your competitor is a scummier thing to do.

                A This user is from outside of this forum
                A This user is from outside of this forum
                aljernon@lemmy.today
                wrote last edited by
                #126

                I haven't really looked deeply into this issue but what caught my eye was the claim that a 30% fee was excessive. I'm no insider into video game publishing but 30% is the standard retail markup for many things. If you bought a candy bar today, it probably cost the mini mart you bought it from 70% of what they're charging.

                A B G B 4 Replies Last reply
                35
                • F firmdistribution@lemmy.world

                  Seems like buying games to remove them from your competitor is a scummier thing to do.

                  A This user is from outside of this forum
                  A This user is from outside of this forum
                  aljernon@lemmy.today
                  wrote last edited by
                  #127

                  I haven't really looked deeply into this issue but what caught my eye was the claim that a 30% fee was excessive. I'm no insider into video game publishing but 30% is the standard retail markup for many things. If you bought a candy bar today, it probably cost the mini mart you bought it from 70% of what they're charging.

                  T 1 Reply Last reply
                  3
                  • T teawrecks@sopuli.xyz

                    What if I told you that the MAU count for Fortnite alone is more than half of the total MAU count for all of steam?

                    Even if the only game on epic was Fortnite, that doesn't qualify as "statistically insignificant" no matter how you look at it.

                    P This user is from outside of this forum
                    P This user is from outside of this forum
                    popcar2
                    wrote last edited by
                    #128

                    Isn't most of that from consoles and mobile?

                    T 1 Reply Last reply
                    1
                    • L lfrith@lemmy.ca

                      Epic approach is the typical venture capitalist run company approach of running at loss then once they get market share start jacking up the prices.

                      Can't really trust a company until they are actually profitable with a functioning sustainable business model. We've seen it time and time again where even Facebook launched without ads and look at it now.

                      B This user is from outside of this forum
                      B This user is from outside of this forum
                      bilbobargains@lemmy.world
                      wrote last edited by
                      #129

                      There's an argument for using these services in the early stages because they often operate at a loss in the hope that they will secure a monopoly in the future. The trick is to immediately abandon them when they jack the price up. I recently heard that in the food delivery space virtually no one is turning a profit.

                      N 1 Reply Last reply
                      4
                      • A aljernon@lemmy.today

                        I haven't really looked deeply into this issue but what caught my eye was the claim that a 30% fee was excessive. I'm no insider into video game publishing but 30% is the standard retail markup for many things. If you bought a candy bar today, it probably cost the mini mart you bought it from 70% of what they're charging.

                        A This user is from outside of this forum
                        A This user is from outside of this forum
                        asparagus0098@sh.itjust.works
                        wrote last edited by
                        #130

                        Just letting you know that you commented the same thing twice.

                        1 Reply Last reply
                        4
                        • A aljernon@lemmy.today

                          Did they explain why moving to another country ment anything?

                          N This user is from outside of this forum
                          N This user is from outside of this forum
                          nugscree@lemmy.world
                          wrote last edited by
                          #131

                          There was a time when the swastika was not allowed to be shown in games because of a law in Germany, causing Wolfenstein (the uncencored version) to be banned. Maybe the country in question has similar laws?

                          D ohshit604@sh.itjust.worksO 2 Replies Last reply
                          6
                          • B bilbobargains@lemmy.world

                            There's an argument for using these services in the early stages because they often operate at a loss in the hope that they will secure a monopoly in the future. The trick is to immediately abandon them when they jack the price up. I recently heard that in the food delivery space virtually no one is turning a profit.

                            N This user is from outside of this forum
                            N This user is from outside of this forum
                            nugscree@lemmy.world
                            wrote last edited by nugscree@lemmy.world
                            #132

                            Even worse, it's costing the food places you order from money. We have a lot of restaurants here that will give you free stuff if you do not use Thuisbezorgd which is owned by Just Eat Takeaway. They also own the American Grubhub since 2021 and are also active in the UK, Germany, Canada and the Netherlands.

                            -edit-

                            Correction they no longer own Grubhub, and are active in a lot more countries than I first thought, see: https://en.wikipedia.org/wiki/Just_Eat_Takeaway.com

                            tattorack@lemmy.worldT D 2 Replies Last reply
                            4
                            • A aljernon@lemmy.today

                              I haven't really looked deeply into this issue but what caught my eye was the claim that a 30% fee was excessive. I'm no insider into video game publishing but 30% is the standard retail markup for many things. If you bought a candy bar today, it probably cost the mini mart you bought it from 70% of what they're charging.

                              B This user is from outside of this forum
                              B This user is from outside of this forum
                              Bakkoda
                              wrote last edited by
                              #133

                              That's what Apple charges devs in their "ecosystem" correct?

                              P R 2 Replies Last reply
                              14
                              • A atrielienz@lemmy.world

                                Why is Epic insignificant?

                                They launched with a 12% service fee, dropped that service fee to 10%, and then dropped the service fee entirely for the first $1Mn in sales per year.

                                In June 2025, they released a new feature enabling developers to launch their own webshops hosted by the Epic Games Store. These webshops could offer players out-of-app purchases, as a more "cost-effective" alternative to in-app purchases.

                                They provide developers with free to generate license keys, and keyless integration with other e-shop stores including GOG, Humble Bundle, and Prime gaming.

                                They offer a user review system.

                                They also added cloud saves in July of 2025.

                                The thing is, they offer none of the other features Steam offers:

                                • In-Home Streaming
                                • Remote Play with Friends
                                • Family Accounts
                                • Achievements
                                • Price Adjusted Bundles
                                • Gifting Games
                                • Shopping Cart
                                • TV/Big Screen Mode

                                Epic launched their service in 2018. It's been 7 years. The only reason not to offer feature parity (for a company that makes $4.6Bn - 5.7Bn in revenue, and a shop that makes $1.09Bn, you'd think they would be enticing users with the services they want.

                                What they have done instead is exclusivity deals that plenty of consumers complain about but devs don't seem to care about so long as they're getting paid.

                                So, the excuse that Steam got there first (as if it's just about that and the reason their market share is what it is is because they have refined, adapted, and improved their service offering over time) doesn't make a whole lot of sense when steam has a significant percent of the market share (79.5% to epic's 42.3%) but is only making twice the revenue of their rival store.

                                It makes sense for GOG or Itch.io who's market cap is smaller by quite a lot to not offer the same feature parity. Each of those platforms has figured out they can offer other things to devs and consumers to make themselves competitive over time.

                                Sweeny's attack is basically just a pity party he's throwing for himself because he doesn't want to compete.

                                Edit
                                This is a sanity check because I wasn't correct with my numbers by mistake.

                                So, the excuse that Steam got there first (as if it's just about that and the reason their market share is what it is is because they have refined, adapted, and improved their service offering over time) doesn't make a whole lot of sense when steam has a significant percent of the market share (79.5% to epic's 42.3%) but is only making twice the revenue of their rival store.

                                These numbers are not correct and I was mistaken. In actuality Valve's revenue is approximately 16 times that of Epic e-shop. It looks like an estimate of Steam's game sales is that about $4Bn of their revenue last year was from Steam's game sales. I am trying to corroborate that from other sources.

                                I'm still looking into and trying to parse out what percentage of steams sales last year were hardware (epic to my knowledge doesn't have a hardware arm of their business), and it's not immediately clear how much they made on the e-shop portion of their business alone so I can get more comparable numbers.

                                What I have been able to find so far I've posted below, and I'll try to remember to come back and do some math on that after I focus on the first thing.

                                https://gamalytic.com/blog/steam-revenue-infographic

                                https://80.lv/articles/valve-earned-over-usd4-billion-on-steam-alone-in-2025-analysts-say

                                T This user is from outside of this forum
                                T This user is from outside of this forum
                                theoaktree@lemmy.zip
                                wrote last edited by
                                #134

                                I'm being annoying, but why do you keep opening parentheses without closing them 😭

                                A 1 Reply Last reply
                                5
                                • F firmdistribution@lemmy.world

                                  Seems like buying games to remove them from your competitor is a scummier thing to do.

                                  Y This user is from outside of this forum
                                  Y This user is from outside of this forum
                                  yopp@infosec.pub
                                  wrote last edited by
                                  #135

                                  Because sweeney is greedy lying piece of shit, who’s using “think of poor developers being robbed by app stores” to cut himself bigger market share by suing fuck out of competitors

                                  Like they won over google and guess what? He fucked over “all the poor developers” and cut himself a juicy deal to settle antitrust case

                                  Fuck him, fuck Epic

                                  https://appleinsider.com/articles/26/01/23/epic-hypocrisy----google-gets-800-million-in-fortnite-antitrust-settlement

                                  daggermoon@lemmy.worldD 1 Reply Last reply
                                  43
                                  • N nugscree@lemmy.world

                                    Even worse, it's costing the food places you order from money. We have a lot of restaurants here that will give you free stuff if you do not use Thuisbezorgd which is owned by Just Eat Takeaway. They also own the American Grubhub since 2021 and are also active in the UK, Germany, Canada and the Netherlands.

                                    -edit-

                                    Correction they no longer own Grubhub, and are active in a lot more countries than I first thought, see: https://en.wikipedia.org/wiki/Just_Eat_Takeaway.com

                                    tattorack@lemmy.worldT This user is from outside of this forum
                                    tattorack@lemmy.worldT This user is from outside of this forum
                                    tattorack@lemmy.world
                                    wrote last edited by
                                    #136

                                    As of late 2025, Just Eat now belongs to Prosus.

                                    1 Reply Last reply
                                    0
                                    • ampersandrew@lemmy.worldA ampersandrew@lemmy.world

                                      To be honest, Epic is doing a good job of tearing down walled gardens in places like mobile, and we'll probably be better off for it. But yeah, they've done a terrible job of competing with Steam.

                                      tattorack@lemmy.worldT This user is from outside of this forum
                                      tattorack@lemmy.worldT This user is from outside of this forum
                                      tattorack@lemmy.world
                                      wrote last edited by
                                      #137

                                      They're doing that because they want their own walled garden.

                                      1 Reply Last reply
                                      3
                                      • F firmdistribution@lemmy.world

                                        Seems like buying games to remove them from your competitor is a scummier thing to do.

                                        I Cast FistI This user is from outside of this forum
                                        I Cast FistI This user is from outside of this forum
                                        I Cast Fist
                                        wrote last edited by
                                        #138

                                        Same reason nobody, not even Sony, sued M$ for buying Activision-King and Bethesda.

                                        MrScottyTayM 1 Reply Last reply
                                        4
                                        • A atrielienz@lemmy.world

                                          Why is Epic insignificant?

                                          They launched with a 12% service fee, dropped that service fee to 10%, and then dropped the service fee entirely for the first $1Mn in sales per year.

                                          In June 2025, they released a new feature enabling developers to launch their own webshops hosted by the Epic Games Store. These webshops could offer players out-of-app purchases, as a more "cost-effective" alternative to in-app purchases.

                                          They provide developers with free to generate license keys, and keyless integration with other e-shop stores including GOG, Humble Bundle, and Prime gaming.

                                          They offer a user review system.

                                          They also added cloud saves in July of 2025.

                                          The thing is, they offer none of the other features Steam offers:

                                          • In-Home Streaming
                                          • Remote Play with Friends
                                          • Family Accounts
                                          • Achievements
                                          • Price Adjusted Bundles
                                          • Gifting Games
                                          • Shopping Cart
                                          • TV/Big Screen Mode

                                          Epic launched their service in 2018. It's been 7 years. The only reason not to offer feature parity (for a company that makes $4.6Bn - 5.7Bn in revenue, and a shop that makes $1.09Bn, you'd think they would be enticing users with the services they want.

                                          What they have done instead is exclusivity deals that plenty of consumers complain about but devs don't seem to care about so long as they're getting paid.

                                          So, the excuse that Steam got there first (as if it's just about that and the reason their market share is what it is is because they have refined, adapted, and improved their service offering over time) doesn't make a whole lot of sense when steam has a significant percent of the market share (79.5% to epic's 42.3%) but is only making twice the revenue of their rival store.

                                          It makes sense for GOG or Itch.io who's market cap is smaller by quite a lot to not offer the same feature parity. Each of those platforms has figured out they can offer other things to devs and consumers to make themselves competitive over time.

                                          Sweeny's attack is basically just a pity party he's throwing for himself because he doesn't want to compete.

                                          Edit
                                          This is a sanity check because I wasn't correct with my numbers by mistake.

                                          So, the excuse that Steam got there first (as if it's just about that and the reason their market share is what it is is because they have refined, adapted, and improved their service offering over time) doesn't make a whole lot of sense when steam has a significant percent of the market share (79.5% to epic's 42.3%) but is only making twice the revenue of their rival store.

                                          These numbers are not correct and I was mistaken. In actuality Valve's revenue is approximately 16 times that of Epic e-shop. It looks like an estimate of Steam's game sales is that about $4Bn of their revenue last year was from Steam's game sales. I am trying to corroborate that from other sources.

                                          I'm still looking into and trying to parse out what percentage of steams sales last year were hardware (epic to my knowledge doesn't have a hardware arm of their business), and it's not immediately clear how much they made on the e-shop portion of their business alone so I can get more comparable numbers.

                                          What I have been able to find so far I've posted below, and I'll try to remember to come back and do some math on that after I focus on the first thing.

                                          https://gamalytic.com/blog/steam-revenue-infographic

                                          https://80.lv/articles/valve-earned-over-usd4-billion-on-steam-alone-in-2025-analysts-say

                                          tattorack@lemmy.worldT This user is from outside of this forum
                                          tattorack@lemmy.worldT This user is from outside of this forum
                                          tattorack@lemmy.world
                                          wrote last edited by
                                          #139

                                          Shopping kart

                                          Yes. The shopping kart feature. Something online stores and webshops came with when the Internet looked like MS Paint.

                                          Somehow absent on a modern platform...

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