NIXSolutions: Valve Removes Mandatory Arbitration Clause

Valve has updated its Steam Subscriber Agreement (SSA), removing the requirement for Steam users outside the UK and EU to resolve disputes through mandatory arbitration. This means all disputes must now be resolved in court.

Why the Change?

Valve stated, “We continue to encourage you to contact Steam Support as this is the best option in most cases. If we are unable to resolve any disputes, the updated SSA requires that any disputes be resolved in court rather than through arbitration.” Additionally, the company removed the anti-class action clause and cost allocation clauses from previous agreements.

NIXSolutions

Arbitration Issues Explained

PC Gamer suggests that Valve’s shift away from mandatory arbitration stems from “arbitration overload.” Back in 2020, companies like Comcast and AT&T faced a similar problem when numerous individuals, instead of pursuing class action lawsuits, filed mass arbitration requests simultaneously. As reported by The New York Times, this strategy overwhelmed companies, likening it to a DDoS attack targeting arbitration boards.

This scenario led to massive financial burdens, as seen when DoorDash was forced to pay millions after receiving 6,000 lawsuits, notes NIXSolutions. Valve also experienced such pressures. According to Reuters, Valve sued a small law firm called Zaiger late last year for “antitrust violations on behalf of more than 50,000 customers of Valve’s Steam game distribution platform.”

We’ll keep you updated on any further developments regarding Valve’s legal policies and dispute resolution processes.