this post was submitted on 14 Mar 2024
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I'm not going to dig through the web for an example of enforcement (which are not likely to be published anyway), when the only relevant matter is whether the PMFN clause exists. You can count every instance of a direct-from-publisher listing not being ~≤30% cheaper than the Steam listing as evidence that all you need is the threat of enforcement.
There is no reason in a market without this PMFN clause that a publisher wouldn't sell the game at equal or higher margin off-Steam.
I would genuinely love if you could point me to an example where the non-discounted price of a game is lower outside of Steam than it is on Steam — I'd love to buy my games cheaper lol.
This part confuses me. Are you trying to clarify to me that Steam isn't taking a 30% cut of what gets sold on, say, Epic Games Store?
Fanatical and humble bundle (the good old days) are good examples. I don't know what you say "non-discounted", cheaper is cheaper no matter what.
Steam doesn't get a cut from keys sold in perfectly legal thirth party stores like fanatical, humble or gmg. Epic does not sell steam keys so obviously no.
Incidentally Wolfire Games—the studio that founded Humble (but no longer operates it)—is currently in class-action litigation against Valve for this very issue.
The Steam Distribution Agreement AFAIK allows temporary sales on other platforms to undercut Steam, but requires the "resting" price matches that on Steam. By specifying "non-discounted" I meant to indicate that although sales do exist on other platforms, the normal price of an item always matches on Steam. A quick few spot checks show the non-sale price of games on Humble, Steam, and Fanatical are equal.
"Cheaper is cheaper" kind of overlooks the core issue. Ultimately a publisher on Epic Games Store—which has a fee of 12% instead of Steam's 30%—can have a lower price for a game as part of a promotion, but can't just sell every game 18% cheaper always without violating Steam's terms and being risk being de-listed.
Okay, gotcha. Yeah, I misunderstood. For Steam Keys it's pretty clear that Valve should be able to control the price since they provide the services after that key is purchased.
But the PMFN applies to all copies, even those distributed outside of Steam (e.g. the direct-from-publisher option I mentioned). Last time I was in a thread on this, another user found the following in the complaint (page 55) from the Wolfire v. Valve case mentioned above:
You said this:
I don't know why you need them to be cheaper before the discount, but okay, I don't care.
To add an example:
Take Cities: Skylines II. It's listed at $50 on Steam, $50 direct from Paradox. If Steam is taking 30% cut, Paradox sees $35 from each sale. Why is Paradox not listing the game at $40? They would earn an extra $5 per sale, and draw more sales.
They have every economic reason to undercut Steam, but they aren't. Like seriously, if not the PMFN, then what's the explanation?
I guess I'm confused. Are you contesting that the PFMN clause has an effect or not? Whether that effect is anticompetitive?