EU charges 6 video game companies with unfair "geo-blocking" (updated)

Pullup Entertainment SA

05/04/2019 11:40

(Adds more on case, background on geo-blocking)
    By Philip Blenkinsop
    BRUSSELS, April 5 (Reuters) - The European Commission
charged Valve, the owner of a video distribution platform, and
five game publishers on Friday with preventing EU consumers from
shopping around within the European Union to find the best deal
for the games they offer.
    The case is the latest move by EU antitrust regulators
against cross-border curbs on online trade, key to what is seen
as a major part of economic growth in the 28-country bloc.
    The Commission, which oversees competition policy in the 28
EU countries, said that the companies were Valve Corp, the owner
of the world's largest video game distribution platform 'Steam',
and five game makers - Bandai Namco  7832.T , Capcom  9697.T ,
Focus Home  ALFOC.PA , Koch Media and ZeniMax.
    "In a true digital single market, European consumers should
have the right to buy and play video games of their choice
regardless of where they live in the EU," European Competition
Commissioner Margrethe Vestager said.
    The Commission has sent what it calls a "statement of
objections" to the companies, allowing them to reply and request
hearings to present their arguments.
    Companies found guilty of anti-competitive behaviour can be
fined up to 10 percent of their annual global turnover.
    The Commission said it was concerned that Valve and the five
game publishers agreed to prevent cross-border sales by
geo-blocking the 'activation keys' that enable consumers to be
able to play games.
    This may have prevented consumers from buying cheaper games
available in other EU countries.
    EU antitrust regulators opened its investigation in February
2017, at the same time also looking into online sales of
electronics and hotel rooms. 
    EU rules prohibit geographically based restrictions that
undermine online shopping and cross-border sales. Last month, it
fined Nike  NKE.N  for blocking cross-border sales of soccer
merchandise.  urn:newsml:reuters.com:*:nL8N21C2NX

 (Reporting by Philip Blenkinsop, editing by Louise Heavens)
 ((philip.blenkinsop@thomsonreuters.com; +32 2 287 6838; Reuters
Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net))