Valve CEO Gabe Newell was recently ordered by a court to appear in person for a deposition regarding an antitrust lawsuit filed against the company by Wolfire Games. The lawsuit alleges that Valve has abused its dominant position in the PC gaming market to engage in anti-competitive behavior, including charging a 30% cut on all games sold through its Steam platform.
Newell will appear in person according to a recent order from a court judge (Thanks GameIndustry.biz!). The 30% fee, Wolfire Games claims, is excessive and Valve is using its position to force developers to use Steam only. Further, the company claims that Valve has engaged in unfair business practices, such as self-preferencing its own games in search results, by preventing developers from offering lower prices on other platforms.
Newell had initially requested that he be allowed to participate in the deposition remotely due to concerns over COVID-19. However, the court denied his request. In a multi-page response, the judge has said that Newell didn’t provide enough evidence to support his concerns.
“The Court appreciates COVID-19’s continued public health risks. (See Dkt. No. 168-1.) But Mr. Newell presents insubstantial evidence to suggest that he is at a particularized risk of serious illness (over that of the general public). (See generally Dkt. No. 168.) The measures he normally takes to minimize COVID-19 exposure, (id.), do not impact this determination. For this reason, the Court finds Mr. Newell has not advanced a legitimate reason for a remote deposition. Even if he had, the Court finds Plaintiffs would be unduly prejudiced by a remote deposition given Mr. Newell’s unique knowledge as to Defendant’s business strategies.”
THE HONORABLE JOHN C. COUGHENOUR
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
This ruling is a significant victory for Wolfire Games, as it means that they will have the opportunity to question Newell directly about his role in Valve’s alleged anti-competitive practices. The deposition is scheduled to take place on December 15, 2023, in Seattle.
The outcome of this lawsuit could have a major impact on the PC gaming industry. If Valve is found to have violated antitrust laws, it could be forced to change its business practices, which could benefit both developers and consumers.
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