In context: Video games have a long history of geo-blocking (aka region locking). In many cases, the practice has legitimate uses, such as preventing software from running where it might be illegal or censored. However, in 2022, the European union imposed rules confronting "unjustified geo-blocking" and views it as a means to "price discriminate" in specific areas in the Union.

The European Commission has fined Valve and five other video game publishers a full of €seven.viii million ($9.5 million) for "geo-blocking" certain games. Geo-blocking is when a publisher or, in Valve's case, a distribution platform restricts game sales based on geographic location. The Committee claims this practise violates Eu antitrust rules. It is worth noting that the EC's investigation focused on the sale of region-locked activation keys and the games themselves.

Bated from Valve, the Commission named Capcom, Bandai Namco, ZeniMax, Koch Media, and Focus Habitation as dominion-breakers. Collectively the companies blocked more 100 games from regions including Czechia, Poland, Republic of hungary, Romania, Slovakia, Estonia, Latvia, and Lithuania.

Margrethe Vestager, executive vice-president in charge of contest policy, issued a statement noting that the fines should remind publishers that geo-blocking is not allowed in the European union.

"More than fifty% of all Europeans play video games. The videogame [sic] manufacture in Europe is thriving and it is now worth over €17 billion. Today's sanctions against the "geo-blocking" practices of Valve and v PC video game publishers serve as a reminder that under European union contest law, companies are prohibited from contractually restricting cross-edge sales. Such practices deprive European consumers of the benefits of the Eu Digital Unmarried Market and of the opportunity to store around for the virtually suitable offering in the Eu."

The five publishers had their fines reduced between 10 and 15 pct for cooperating with the Commission'due south investigation. Valve chose not to cooperate and received an unreduced penalty of more than than €1.6 meg ($ii million).

Valve has not commented on the Commission's action. However, when the EC asked the company to stop the practice concluding year, Valve told The Verge in a argument that only "a small number of games" (near three percent) were geo-blocked. It explained that with express exceptions, it turned off geo-blocking in European regions in 2022. It further argued that it should not be held responsible for publishers that utilize region-locked activation since it does not straight sell Steam keys.

Image credit: Alexandros Michailidis