# THE UNSEALED FILES: VALVE INTERNAL COMMUNICATIONS, AML ADMISSIONS & SSA TRANSFORMATION > **Classification:** Primary Legal & Regulatory Exhibit — Docket Series L-01 > **Harvested:** 2026-09-24 22:55:57 UTC > **Total Primary Dossier Records:** 10 > **Jurisdictions Covered:** U.S. Federal District Court (W.D. Wash.), FTC, Washington State Gambling Commission, Federal Court of Australia, European General Court. --- ## SECTION 01: Unsealed Internal Emails & Gabe Newell Depositions **Investigative Focus:** `Wolfire Games v. Valve unsealed internal communications steam 30 percent cut justification Scott Lynch` ### Executive Forensic Summary & Facts: > Wolfire Games sued Valve over its 30% Steam cut, claiming monopoly abuse; Valve's Scott Lynch responded with "You mad bro?"; the case is ongoing and has class certification. ### Primary Supporting Documents & Court Records: - **[Overgrowth dev Wolfire Games files antitrust lawsuit against Valve over Steam fees](https://www.gamedeveloper.com/business/-i-overgrowth-i-dev-wolfire-games-files-antitrust-lawsuit-against-valve-over-steam-fees)** > *"It claims that Steam owner and operator Valve currently dominates the distribution of PC titles, with approximately 75 percent of PC games sales flowing through Steam, and alleges "Valve uses that dominance to take an extraordinarily high cut from nearly every sale that passes through its store." The lawsuit is referring to the 30 percent commission that Valve levies at Steam developers and publishers, which according to the latest GDC State of ..."* - **[Tim Sweeney unleashes most Sweeney-esque tirade against Valve over Steam’s 30% cut in newly released 2018 emails | Game World Observer](https://gameworldobserver.com/2024/03/14/sweeney-vs-steam-cut-epic-tirade-gaben-emails-revealed)** > *"Some of you may remember an antitrust lawsuit against Valve filed by Wolfire Games back in 2021. The court case recently entered a new phase, revealing some internal data, including never-before-seen emails from Epic Games CEO Tim Sweeney. Tim Sweeney (Image credit: Unreal Engine’s YouTube channel) Wolfire, which initially accused Valve of usurpering the PC games market, monopolizing it, and killing competition by enforcing pricing parity, deci..."* - **[Wolfire versus Valve antitrust lawsuit gets dismissed](https://www.reddit.com/r/linux_gaming/comments/qzfwjj/wolfire_versus_valve_antitrust_lawsuit_gets)** > *"Valve is earning its 30% revenue cut. their revenue. Another 3% said that more than 30% is justified. Steam and GOG to take 30% of their..."* - **[Wolfire Games LLC et al v. Valve Corporation, 2:2021cv00563 - Document 67 (W.D. Wash. 2021)](https://law.justia.com/cases/federal/district-courts/washington/wawdce/2:2021cv00563/298754/67)** > *"of a third-party publishers’ games. (See generally id.) 19 Instead, it generates revenue through a fee that it charges for each third-party game sold in the 20 Steam Store and for in-app purchases. (Id. at 24, 28, 78.) Defendant initially set the fee at 30% 21 but now provides limited discounts to high-volume developers and/or publishers. (Id. at 5.) 22 The initial appeal of the Steam Platform to game consumers was the ability to maintain 23 and ..."* - **[Steam Price-Fixing Lawsuit: Valve, 10 Publishers Sued [2026]](https://tech-insider.org/valve-10-publishers-steam-price-fixing-lawsuit-2026)** > *"| Date | Case / action | Venue | Core allegation | Status (Sept. 2026) | --- --- | April 2021 | Wolfire Games v. Valve | W.D. Washington (federal) | Valve’s 30% cut is monopoly abuse against developers | Class certified Nov. 2024; ongoing | | February 2025 | Stichting Massaschade & Consument v. Sony | Netherlands | PlayStation Store monopoly inflates prices; ~$457M sought | Backed by Stop Killing Games, Aug. 2026 | | 2026 (trial concluded) | S..."* - **[Game Developers Going After Valve in Class Action Lawsuit](https://www.youtube.com/watch?v=us6IKKOZWi8)** > *"### Transcript [0:00] vve is now facing a class action lawsuit that can benefit game developers who sold a game on Steam after January 2017 [0:08] this lawsuit applies to any developer publisher or individual who paid a commission to vve turning this multi-year long battle between two [0:16] development companies and vve into a much larger fight let's go into everything you need to know before more devs start joining in this first started [0:24] ..."* - **[211201.mbx](http://bankrupt.com/CAR_Public/211201.mbx)** > *"Marie Dealessandri, writing for gamesindustry.biz, reports that a US District judge dismissed the antitrust lawsuit filed by Wolfire Games against Valve. As reported by Rock Paper Shotgun, the ruling was filed on November 19, with the document indicating that Wolfire's complaint did "not articulate sufficient facts to plausibly allege an antitrust injury based on that market." The starting point of the lawsuit, which Wolfire f..."* - **[2021 lawsuit against Steam's 30% cut and its alleged ...](https://wnhub.io/news/stores-and-publishing/item-46358)** > *"Wolfire originally filed its lawsuit in April 2021, claiming that Steam's 30% cut “imposes a massive tax on the PC Desktop Gaming industry”..."* --- ## SECTION 02: Unsealed Internal Emails & Gabe Newell Depositions **Investigative Focus:** `Wolfire Games v. Valve Gabe Newell video deposition unsealed price parity rules` ### Executive Forensic Summary & Facts: > Gabe Newell denied enforcing price parity rules in Valve's antitrust case, but internal communications suggest Valve monitored and enforced these guidelines. The case focuses on whether Valve's practices are anticompetitive. The outcome could impact pricing rules in digital marketplaces. ### Primary Supporting Documents & Court Records: - **[Wolfire Games LLC et al v. Valve Corporation](https://docs.justia.com/cases/federal/district-courts/washington/wawdce/2:2021cv00563/298754/170)** > *"At issue is whether Gabe Newell should be compelled to appear in person for a Rule 17 30(b)(1) deposition. (See generally id.) For the reasons described..."* - **[The Court Ruling That Just Shattered Valve's Plans](https://www.youtube.com/watch?v=yV1_bWc0-gI)** > *"This investigative deep dive explores the high-stakes legal battle currently threatening PC gaming’s most dominant platform. Following a crucial late March 2026 ruling that officially denied Valve’s motion for summary judgment, a massive antitrust class action representing approximately 32,000 independent developers and publishers is heading directly to a federal jury trial. We unpack recently unsealed discovery files and deposition transcripts t..."* - **[Valve’s Antitrust Reckoning Over Steam Has Echoes of Apple, Google App Store Sui - Bloomberg](https://www.bloomberg.com/news/features/2026-06-01/valve-s-antitrust-reckoning-over-steam-has-echoes-of-apple-google-app-store-sui)** > *"The suit, which is ongoing, centers on what the developers alleged was a tacit company policy designed to punish them for offering discounts at competing online stores. But instead of defending the purported rule, Newell just denied it existed. “Valve does not have a policy or practice of dictating prices to third-party software developers on other platforms,” he said, according to a previously unreported transcript of his deposition. Presented w..."* - **[Gabe Newell defended Steam during the antitrust case ...](https://www.instagram.com/p/DZF2oWTAQJA?hl=en)** > *"A massive new antitrust lawsuit just hit Valve, EA, Ubisoft, and Capcom over Steam's strict price parity rules. If successful, this could break..."* - **[Parity and Power: Steam's Antitrust Reckoning in Wolfire v ...](https://www.create.ac.uk/blog/2025/07/01/parity-and-power-steams-antitrust-reckoning-in-wolfire-v-valve)** > *"Why This Matters for Creative Industries The implications of this case extend well beyond gaming. Parity clauses are used in app stores, subscription platforms, and digital marketplaces across the cultural economy. If Wolfire results in a ruling that such clauses are anticompetitive when used by dominant platforms, it could reshape pricing, access, and business model flexibility across music, streaming video, and publishing. The risk, from a re..."* - **[Gabe Newell ordered to make in-person deposition for Valve v. Wolfire Games lawsuit | GamesIndustry.biz](https://www.gamesindustry.biz/gabe-newell-ordered-to-make-in-person-deposition-for-valve-v-wolfire-games-lawsuit)** > *"The filing centred around the 30% cut that the platform holder takes, with the developer arguing that Valve used "dominance to take an extraordinarily high cut from nearly every sale that passes through its store" and that it has used its position to "exploit publishers and consumers." The claim was initially dismissed in November 2021, with a US District judge arguing that the complaint did "not articulate sufficient facts to plausibly allege a..."* - **[Steam Price-Fixing Lawsuit: Valve, 10 Publishers Sued [2026]](https://tech-insider.org/valve-10-publishers-steam-price-fixing-lawsuit-2026)** > *"Gabe Newell has previously pushed back on this framing. In testimony cited by Bloomberg’s reporting on Valve’s broader antitrust exposure, the Valve co-founder and CEO stated that “Valve does not have a policy or practice of dictating prices to third-party software developers on other platforms.” That statement was made in the context of the separate federal Wolfire litigation, but it speaks directly to the price-parity allegation now driving the..."* - **[Valve Antitrust Lawsuit: Trial Set, 32000 Devs [2026]](https://shattered.io/valve-antitrust-lawsuit-2026)** > *"In his November 2023 deposition, Newell reportedly maintained that Valve has no policy or practice of dictating prices to third-party developers on other platforms – a position he held even when shown internal Valve communications that plaintiffs’ attorneys characterized as evidence of informal price enforcement, according to the same reporting. That gap between Valve’s public statements and the internal records plaintiffs say they’ve obtained is..."* --- ## SECTION 03: Valve AML Official Admissions **Investigative Focus:** `Valve October 28 2019 CS:GO keys update 'worldwide fraud networks have recently shifted to using CS:GO keys'` ### Executive Forensic Summary & Facts: > On October 28, 2019, Valve stopped trading and selling of CS:GO keys due to widespread money laundering. New keys can no longer be traded. Pre-existing keys remain tradable. ### Primary Supporting Documents & Court Records: - **[Counter-Strike: Global Offensive - Wikipedia](https://en.wikipedia.org/wiki/Counter-Strike:_Global_Offensive)** > *"In 2019, Valve made changes to Global Offensive's loot box mechanics due to a realization that "nearly all" of the trading on loot box keys was done by criminal organizations as a method of money laundering. Valve released a statement, saying, “In the past, most key trades we observed were between legitimate customers. However, worldwide fraud networks have recently shifted to using CS:GO keys to liquidate their gains. At this point, nearly all k..."* - **[Last night Valve ended the era of trading/selling CS:GO ...](https://www.facebook.com/csmoneytrade/posts/last-night-valve-ended-the-era-of-tradingselling-csgo-keysas-of-today-new-keys-f/1144205975770115)** > *"Valve patched the game on October 28 … worldwide fraud networks have recently shifted to using CS:GO keys to liquidate their gains...."* - **[Counter-Strike: Global Offensive » Key Change](https://blog.counter-strike.net/2019/10/26113)** > *"Why make this change? In the past, most key trades we observed were between legitimate customers. However, worldwide fraud networks have recently shifted to using CS:GO keys to liquidate their gains. At this point, nearly all key purchases that end up being traded or sold on the marketplace are believed to be fraud-sourced. As a result we have decided that newly purchased keys will not be tradeable or marketable. For the vast majority of CS:GO u..."* - **[Valve says that nearly all CS:GO key resales are being used to launder money - ZDNET](https://www.zdnet.com/article/valve-says-that-nearly-all-csgo-key-resales-are-being-used-to-launder-money)** > *"Until yesterday, CS:GO players could buy keys from Valve and then sell the keys to other players for real money, cryptocurrency, or other in-game perks. For years, players have been using this in-game trading system to turn small profits or as a way to exchange in-game perks they wouldn’t normally be able to collect. More from ZDNET However, in a statement posted on late Monday night, Valve said that “worldwide fraud networks have recently shif..."* - **[Valve to block CS:GO Case key sales and trades after realising they’re used for money laundering](https://www.criticalhit.net/gaming/valve-to-block-csgo-case-key-sales-and-trades-after-realising-theyre-used-for-money-laundering)** > *"> “Why make this change? In the past, most key trades we observed were between legitimate customers. However, worldwide fraud networks have recently shifted to using CS:GO keys to liquidate their gains. At this point, nearly all key purchases that end up being traded or sold on the marketplace are believed to be fraud-sourced. As a result we have decided that newly purchased keys will not be tradeable or marketable. > > For the vast majority of C..."* - **[What is happening with csgo keys ? :: Counter-Strike 2 ...](https://steamcommunity.com/app/730/discussions/0/1694969361103059575?l=brazilian)** > *"However, worldwide fraud networks have recently shifted to using CS:GO keys to liquidate their gains. At this point, nearly all key purchases that end up..."* - **[Valve disables container key sales and trades in CS:GO due to rampant fraud](https://www.gamedeveloper.com/game-platforms/valve-disables-container-key-sales-and-trades-in-i-cs-go-i-due-to-rampant-fraud)** > *"“In the past, most key trades we observed were between legitimate customers,” explains Valve’s post. “However, worldwide fraud networks have recently shifted to using CS:GO keys to liquidate their gains. At this point, nearly all key purchases that end up being traded or sold on the marketplace are believed to be fraud-sourced.” ## About the Author Alissa McAloon Alissa McAloon Editorial Director, GameDeveloper.com As the Editorial Director ..."* - **["Nearly All" Microtransactions in CS:GO Are Used to ...](https://games.mxdwn.com/news/nearly-all-microtransactions-in-csgo-are-used-to-launder-money)** > *"However, worldwide fraud networks have recently shifted to using CS:GO keys to liquid their gains. At this point, nearly all key purchases..."* --- ## SECTION 04: Valve AML Official Admissions **Investigative Focus:** `Valve Cease and Desist letters July 19 2016 list of 23 skin gambling sites Karl Quackenbush` ### Executive Forensic Summary & Facts: > On July 19, 2016, Valve sent cease and desist letters to 23 skin gambling sites, including CSGO Lotto, via Karl Quackenbush. The letters warned of legal action if gambling operations continued. Valve aimed to stop unauthorized gambling using Steam accounts. ### Primary Supporting Documents & Court Records: - **[Valve begins sending Cease and Desist letters to CSGO gambling sites | KitGuru](https://www.kitguru.net/gaming/matthew-wilson/valve-begins-sending-cease-and-desist-letters-to-csgo-gambling-sites)** > *"There are 23 sites targeted by this letter, including TmarTn and Pro Syndicate’s CSGO Lotto. However, there are one or two sites missing from the list, including CSGO Shuffle so Valve’s work might not be done just yet. KitGuru Says: Valve’s promised legal action has begun, now we just have to wait and see whether or not further action will be taken. Have any of you guys ever gambled CSGO skins? What do you think of this whole situation? Become ..."* - **[Valve lawyers send cease-and-desist letters to Counter-Strike gambling sites - Ars Technica](https://arstechnica.com/gaming/2016/07/valve-lawyers-send-cease-and-desist-letters-to-counter-strike-gambling-sites)** > *"Valve Software, the maker of the Steam online gaming service, sent cease-and-desist notices to 23 online gambling sites on Tuesday in a move to quell complaints about the service’s “marketplace” system. “Your commercial use of Steam accounts is unlicensed and in violation of the Steam Subscriber Agreement,” Valve general counsel Karl Quackenbush wrote in the letter. “You should immediately cease and desist further use of your Steam accounts for ..."* - **[Skin gambling - Wikipedia](https://en.wikipedia.org/wiki/Skin_gambling)** > *"Shortly after the second lawsuit above, Valve's Erik Johnson stated in a July 13, 2016, letter to Gamasutra that they will demand the third-party sites that use Steam functionality to aid in gambling to cease their use of Steam in that manner, as their methods of connectivity and use go against Steam's acceptable use policy. Johnson also stated that Valve has no business relationships with these sites, and will pursue legal action if they continu..."* - **[Valve Strikes Back: A Strong Response to Allegations of Skin-Betting “Gambling” | Goodwin - JDSupra](https://www.jdsupra.com/legalnews/valve-strikes-back-a-strong-response-to-27748)** > *"The sites served letters include CSGOLounge, CSGOStrong, CSGODouble, CSGO500, CSGOCosmos, CSGOCasino, CSGO2x, CSGOHouse, CSGOAtse, CSGODiamonds, SocietyLogin, Dota2Lounge, CSGOCrash, CSGOBig, CSGOFast, CSGOSweep, CSGOMassive, CSGOBattle, Skins2, CSGOPot, CSGOWild, Bets.gg and CSGOLotto. Some of these sites were already embroiled in scandal, with CSGODiamonds admitting in early June that it gave a sponsored player advance notice of the outcomes of..."* - **[Valve crack down on Team Fortress 2 skin gambling | Rock Paper Shotgun](https://www.rockpapershotgun.com/team-fortress-2-skin-gambling)** > *"I've explained in more depth so many times before but here's a quick summary. So! Skin gambling sites use legitimate Steam channels and illegitimate trading bots to cash in and cash out items, in-between using them as chips for gambling from roulette to betting on professional matches. This isn't allowed by Steam. Valve are trying to kill off the accounts used by bots, which are crucial to all this. Valve's general counsel, the amazingly-named Ka..."* - **[Valve following through on taking legal action against ...](https://www.shacknews.com/article/95936/valve-following-through-on-taking-legal-action-against-csgo-gambling-sites)** > *"The letter went out to 23 online gambling sites including CSGO Lounge and CSGO Lotto, two of the most well-known of the bunch. These and other..."* - **[Valve Sends Cease and Desist Letters to CS:GO Gambling Sites | TechRaptor](https://techraptor.net/gaming/news/valve-sends-cease-and-desist-letters-to-csgo-gambling-sites)** > *"Valve logo # Valve Sends Cease and Desist Letters to CS:GO Gambling Sites Written by Brandon Bobal Published: July 20, 2016 8:20 AM Last week, Valve posted a response to the recent scandals involving Counter Strike: Global Offensive gambling websites, stating that they were aware of the situation and would be taking action. You can read about TechRaptors coverage of the scandal in our articles. Yesterday, July 19, 2016, Richard Lewis posted ..."* - **[Valve responds to Washington State's cease and desist letter - ESPN](https://www.espn.com/esports/story/_/id/17827259/global-offensive-responds-washington-state-gambling-commission)** > *"Valve first sent its cease and desist letter to skins gambling websites -- such as CSGO Lounge, CSGO Wild, CSGO Lotto and more -- in July, claiming that those sites must stop using skins for commercial gambling use by Jul. 30. Many of those sites have shut down or changed their business models away from gambling since that letter. [...] ## ESPN # Valve responds to Washington State's cease and desist letter Copy Link Counter-Strike: Global Offe..."* --- ## SECTION 05: Steam Subscriber Agreement Stripping Archive **Investigative Focus:** `Valve updates Steam Subscriber Agreement September 2024 removes arbitration clause Zaiger LLC` ### Executive Forensic Summary & Facts: > Valve removed the arbitration clause from Steam's Subscriber Agreement in September 2024, allowing users to take legal action in court. The change was in response to legal pressure from Zaiger LLC. Future disputes will be resolved in Washington State courts. ### Primary Supporting Documents & Court Records: - **[Steam changes its terms of service, removing mandatory arbitration clause and allowing gamers to take legal action against parent company Valve - GIGAZINE](https://gigazine.net/gsc_news/en/20240930-steam-removes-forced-arbitration-clause)** > *"September 30, 2024 - Valve pointed out that Zaiger's tactics are a legal tactic known as 'arbitration overload' and a way to pressure the company, and that the changes to the terms of service are likely an attempt to avoid this arbitration overload. Any future disputes between users and Valve will be resolved in the courts of Washington State, USA. The full text of Steam's terms of use can be found below. Steam Terms of Use https://store.steampow..."* - **[r/gaming on Reddit: Steam has removed Forced Arbitration from their Subscriber Agreement](https://www.reddit.com/r/gaming/comments/1fqdzti/steam_has_removed_forced_arbitration_from_their)** > *"September 27, 2024 - The Updated Steam Subscriber Agreement - Valve has deleted the binding arbitration clause and class action waiver for areas where these were enforceable..."* - **[Valve eliminates Steam's arbitration clause in new update](https://www.gamedeveloper.com/business/valve-eliminates-steam-s-arbitration-clause-in-new-agreement-update)** > *"User disputes against Valve and Steam could go directly to court if a resolution isn't found through customer support. Picture of Justin Carter September 30, 2024 Screenshot of the Steam platform. Valve has updated its Steam Subscriber Agreement (SSA) to change how disputes between Valve and Steam users are resolved. Per its blog, the new SSA eliminates the requirement for disputes to go through individual arbitration. Instead, if a problem..."* - **[Valve Removes Mandatory Arbitration from Steam ...](https://www.legal.io/blog/5540864/Valve-Removes-Mandatory-Arbitration-from-Steam-Subscriber-Agreement)** > *"Don't have an account? Request Enterprise Demo ### Search All Jobs News Apps Organizations People ###### Legal.io Oct 01, 2024 # Valve Removes Mandatory Arbitration from Steam Subscriber Agreement Valve updated the Steam Subscriber Agreement, eliminating the mandatory arbitration clause and class-action waiver, now directing gamers to the courts instead. In a significant shift in its legal strategy, Valve Corporation has eliminated ..."* - **[The End of Steam's Arbitration Agreement - Video Game Law](https://videogamelaw.allard.ubc.ca/2025/04/01/the-end-of-steams-arbitration-agreement-when-class-action-is-preferred)** > *"In 2024, gaming company Valve removed the mandatory arbitration clause from the subscriber agreement for its online gaming platform Steam...."* - **[Valve has updated the Steam Subscriber Agreement. ...](https://news.ycombinator.com/item?id=41666197)** > *"| | | | --- | | Hacker Newsnew | past | comments | | | | | login | | | | | --- | | | lcnPylGDnU4H9OF on Sept 27, 2024 | parent | context | favorite | on: Steam Changes to the Subscriber Agreeement > Valve has updated the Steam Subscriber Agreement. The updates affect your legal rights, including how disputes and claims between you and Valve are resolved. Among other things, the new dispute resolution ..."* - **[Steam Subscriber Agreement updated for disputes removing the need for individual arbitration | GamingOnLinux](https://www.gamingonlinux.com/2024/09/steam-subscriber-agreement-updated-for-disputes-removing-the-need-for-individual-arbitration)** > *"coolitic 27 Sep 2024 Link User Avatar It's because they had their lawsuit against Zaiger dismissed: (External Link: You need to be logged in to view this.) They were suing Zaiger for abusing the arbitration system to do mass arbitrations, which was netting Zaiger a lot of money in fees. 5 Likes 👍 (5) See more... GamingTFM 27 Sep 2024 Link User Avatar I was wondering about this as some kinda 'scam' or fake message at first, so I c..."* - **[Steam forcing NEW BAD agreement on us !?!? :: Steam Discussions](https://steamcommunity.com/discussions/forum/0/4843148592913664896)** > *"September 27, 2024 - What was dismissed was the claim Zaiger was abusing the arbitration claims because the court doesn't have personal jurisdiction over Zaiger...."* --- ## SECTION 06: Steam Subscriber Agreement Stripping Archive **Investigative Focus:** `ACCC v Valve Corporation [2016] FCA 196 Justice Edelman misleading deceptive conduct Australian Consumer Law` ### Executive Forensic Summary & Facts: > In 2016, Valve Corporation was found to have misled Australian consumers under the Australian Consumer Law, resulting in a $3 million penalty. The court ruled that Valve's online game distribution platform Steam supplied digital goods, thus falling under consumer guarantees. This case set a precedent for foreign entities operating in Australia. ### Primary Supporting Documents & Court Records: - **[Foreign entities beware: consumer guarantees in the online…](https://hallandwilcox.com.au/news/foreign-entities-beware-consumer-guarantees-in-the-online-marketplace-heating-up)** > *"Valve challenged the ACCC’s claim on several grounds including that: its conduct did not occur in Australia; it does not carry on business in Australia; and it does not ‘supply goods’ within the meaning of the ACL. ### Federal Court decision The Honourable Justice Edelman of the Federal Court found Valve contravened sections 18(1) and 29(1)(m) of the ACL, in that it engaged in misleading or deceptive conduct and made false or misleading rep..."* - **[Full Federal Court confirms that Valve misled gamers | ACCC](https://www.accc.gov.au/media-release/full-federal-court-confirms-that-valve-misled-gamers)** > *"ACCC logo ACCC logo ACCC logo ACCC logo # Full Federal Court confirms that Valve misled gamers ### Date ### Topics The Full Court of the Federal Court of Australia has today dismissed an appeal by Valve Corporation (Valve) against a ruling that it engaged in misleading or deceptive conduct and made false or misleading representations about consumer guarantees. Valve’s appeal against a $3 million penalty was also dismissed. Valve is one of th..."* - **[Australian Competition and Consumer Commission v ...](https://en.wikisource.org/wiki/Australian_Competition_and_Consumer_Commission_v_Valve_Corporation_(No_3))** > *"2 The applicant, the ACCC, alleges that Valve made misrepresentations in relation to the acceptable quality guarantee in s 54 of the Australian Consumer Law which, by s 64, could not be modified or excluded. The ACCC says that Valve (i) contravened s 18(1) of the Australian Consumer Law by making representations which were misleading or deceptive or likely to mislead or deceive, and (ii) contravened s 29(1)(m) by making false or misleading repres..."* - **[Market insights - HWLE Lawyers](https://hwlebsworth.com.au/game-over-critical-win-for-accc-against-valve)** > *"###### Implications Although the Court ultimately found that Valve had made misleading or deceptive representations to Australian consumers, the importance of this case rests with the finding that Valve came within the ambit of the consumer protection provisions in the ACL, despite being a foreign corporation. Justice Edelman’s decision has significant implications for businesses supplying goods to Australian consumers, namely that:..."* - **[The long arm of the Australian Consumer Law reaches offshore | Herbert Smith Freehills Kramer | Global law firm](https://www.hsfkramer.com/insights/2016-04/the-long-arm-of-the-australian-consumer-law-reaches-offshore)** > *"29 Apr 2016 Insight Australia, Brisbane, Melbourne, Perth, Sydney Article - By Chris Jose, Peter Strickland, Felicity Lee On 24 March 2016, the Federal Court held that Valve Corporation (Valve) – a company based in the United States that operates an online game distribution network known as Steam – had engaged in misleading or deceptive conduct and made false or misleading representations to Australian consumers about the operation of the cons..."* - **[Australian Consumer Law applies to supply of online software by foreign corporation - Global Compliance News](https://www.globalcompliancenews.com/2016/05/06/australian-consumer-law-applies-to-supply-of-online-software-by-foreign-corporation-20160506)** > *"1. the proper law of each consumer contract was that of Washington State; 2. the supply of digitally downloadable computer games is not a ‘supply of goods’ but a supply of services (which are not subject to the guarantee of acceptable quality); and 3. this conduct did not occur within Australia, nor was the Company carrying on business in Australia. ### Decision Justice Edelman found that the Company had engaged in misleading and deceptive cond..."* - **[Valve Ordered To Pay $3 Million For Misleading Australian Gamers On Steam](https://www.legal500.com/en/intelligence/australia/consumer-protection/valve-ordered-to-pay-$3-million-for-misleading-australian-gamers-on-steam)** > *"At first instance ([ FCA 1553]( Justice Edelman found that Valve had engaged in misleading and deceptive conduct and misrepresentation by making the misrepresentations contained in the SSA and SRP. His Honour dismissed the ACCC's claim based on the online customer support conversations. Justice Edelman imposed a pecuniary penalty of $3 million and made a declaration that Valve had contravened the ACL. His Honour further ordered an injunction to ..."* - **[consumer guarantees in the online marketplace heating up](https://www.lexology.com/library/detail.aspx?g=0e3cc8f7-7c92-488d-b85f-c0d2bfd1c87f)** > *"The applicant, ACCC, issued proceedings against Valve alleging that Valve acted contrary to the ACL in making misleading or deceptive..."* --- ## SECTION 07: Unsealed Internal Emails & Gabe Newell Depositions **Investigative Focus:** `Wolfire Games v Valve unsealed email Tim Sweeney Gabe Newell 30 percent` ### Executive Forensic Summary & Facts: > Tim Sweeney criticized Valve's 30% Steam cut, calling them "assholes" in emails. Valve's COO responded with "You mad bro?" The dispute is part of an ongoing antitrust lawsuit. ### Primary Supporting Documents & Court Records: - **[Tim Sweeney unleashes most Sweeney-esque tirade against Valve over Steam’s 30% cut in newly released 2018 emails | Game World Observer](https://gameworldobserver.com/2024/03/14/sweeney-vs-steam-cut-epic-tirade-gaben-emails-revealed)** > *"Sweeney replied that he has “never heard of Sean Jenkins,” going on a rant about 30% platform cuts. He said they were no longer justifiable, trying to encourage Valve to reduce the fees. “If you subtract out the top 25 games on Steam, I bet Valve made moreprofit from most of the next 1000 than the developer themselves made,” the Epic Games CEO noted. Another unredacted correspondence released as part of the Wolfire v. Valve case took place betwe..."* - **[Valve's ongoing antitrust lawsuit has revealed some pretty ...](https://www.facebook.com/thegamercom/posts/valves-ongoing-antitrust-lawsuit-has-revealed-some-pretty-heated-emails-between-/960096648805415)** > *"Valve's ongoing antitrust lawsuit has revealed some pretty heated emails between Gabe Newell and Epic Games CEO Tim Sweeney. a 30% junk fee."..."* - **[Epic Boss Tim Sweeney Emailed Gabe Newell to Call Valve 'Assholes' Over Steam Fees - IGN](https://www.ign.com/articles/epic-boss-tim-sweeney-emailed-gabe-newell-to-call-valve-assholes-over-steam-fees)** > *"IGN Logo IGN Logo Game Scope Trivia ### News ### Reviews ### Discover ### Guides ### Videos ### Account IGN Logo IGN Logo # Epic Boss Tim Sweeney Emailed Gabe Newell to Call Valve 'Assholes' Over Steam Fees ## "You mad bro?" Avatar A very on brand and slightly hilarious exchange between the bosses of Steam owner Valve and the Epic Games Store has been revealed in an ongoing court case. As reported by GameDiscoverCo, the lawsuit betwe..."* - **[“You a—holes”: Court docs reveal Epic CEO’s anger at Steam’s 30% fees - Ars Technica](https://arstechnica.com/gaming/2024/03/you-a-holes-court-docs-reveal-epic-ceos-anger-at-steams-30-fees)** > *"The first mostly unredacted email chain from the court documents, from August 2017, starts with Valve co-founder Gabe Newell asking Sweeney if there is “anything we [are] doing to annoy you?” That query was likely prompted by Sweeney’s public tweets at the time questioning “why Steam is still taking 30% of gross [when] MasterCard and Visa charge 2-5% per transaction, and CDN bandwidth is around $0.002/GB.” Later in the same thread, he laments tha..."* - **[Tim Sweeney emailed Gabe Newell calling Valve 'you assholes' over Steam policies, to which Valve's COO simply replied 'you mad bro?' | IconEra](https://icon-era.com/threads/tim-sweeney-emailed-gabe-newell-calling-valve-you-assholes-over-steam-policies-to-which-valves-coo-simply-replied-you-mad-bro.10590)** > *"Content Creator Sircaw's Army #1 msQUXQH9yDdiSMXEP4J6iS-970-80.png.webp Sweeney is emailing Gabe Newell and Scott Lynch, and begins by outlining his problems with Apple, before telling them about the imminent launch of the Epic Games Store. This is a direct competitor to Steam and, credit where it's due, Epic put its money where Sweeney's mouth was by launching with a flat 12% platform fee. Sweeney wants Valve to respond to this, mainly ..."* - **[Epic CEO ANGRY email to Steam](https://www.youtube.com/watch?v=NukzBK6mseY&xstg=CAMSBhUD-7L2Hw%3D%3D)** > *"Epic CEO Tim Sweeney to Gabe Newell talking about the Steam revenue cut. Some people feel that 30% is an excessive amount, at least lower it to..."* --- ## SECTION 08: Valve AML Official Admissions **Investigative Focus:** `Washington State Gambling Commission notice Valve Corporation October 2016 skins` ### Executive Forensic Summary & Facts: > In October 2016, Washington State Gambling Commission ordered Valve to stop skin gambling on Steam. Valve had to respond by October 14, 2016, or face sanctions. Valve denied gambling activities. ### Primary Supporting Documents & Court Records: - **[r/GlobalOffensive on Reddit: Washington State Gambling Commission Orders Valve To Stop Skin Gambling Via Steam](https://www.reddit.com/r/GlobalOffensive/comments/560szn/washington_state_gambling_commission_orders_valve)** > *"October 5, 2016 - "The Washington State Gambling Commission has notified Valve Corporation that it must immediately stop allowing the transfer of virtual weapons known as “skins” for gambling activities through the company’s Steam Platform." from the release..."* - **[Valve is in hot water with Washington State over skin gambling – Destructoid](https://www.destructoid.com/valve-is-in-hot-water-with-washington-state-over-skin-gambling)** > *"October 5, 2016 - The Gambling Commission expects Valve to take whatever actions are necessary to stop third party websites from using ‘skins’ for gambling through its Steam Platform system, including preventing these sites from using their accounts and ‘bots’ to facilitate gambling transactions. Valve Corporation has until October 14, 2016 to respond and explain how it is in full compliance with Washington’s gambling laws or it will risk having ..."* - **[The Nosy Gamer: Valve Threatened With Sanctions For Skins Gambling By Washington State](https://nosygamer.blogspot.com/2016/10/valve-threatened-with-sanctions-for.html)** > *"> PRESS RELEASE > > Valve Corporation Told to Stop Facilitating Gambling > > > Washington State Gambling Commission Headquarters, LACEY, Washington – October 5, 2016. > > The Washington State Gambling Commission has notified Valve Corporation that it must immediately stop allowing the transfer of virtual weapons known as “skins” for gambling activities through the company’s Steam Platform. > [...] > Valve Corporation has until October 1..."* - **[Washington State's Gambling Commission to Valve: "Stop Facilitating Gambling" | Esports by Inquirer.net](https://esports.inquirer.net/16976/washington-states-gambling-commission-valve-stop-facilitating-gambling)** > *"October 6, 2016 - The Washington State Gambling ... to the Valve corporation, ordering the gaming publisher to stop the rampant use of their in-game skins and items for gambling purposes on third-party sites...."* - **[Valve challenge Gambling Commission to cite laws broken over skin gambling, deny wrongdoing](https://www.pcgamesn.com/counter-strike-global-offensive/washington-gambling-commission-demand-valve-end-skin-gambling)** > *"October 18, 2016 - In a polite but firm letter to the Washington State Gambling Commission, dated yesterday, Valve state that they are "not engaged in gambling or the promotion of gambling, and we do not..."* - **[Valve fires back at Washington regulators over facilitation ...](https://www.geekwire.com/2016/valve-fires-back-warning-skins-gambling)** > *"GeekWire Logo ##### Menu What happens here matters everywhere. # Valve fires back at Washington regulators over facilitation of ‘Counter Strike’ online gambling by Nat Levy on Oct 19, 2016 at 9:49 amOctober 19, 2016 at 9:49 am CSGO skinsLocal gaming company Valve this week responded to claims made by the Washington State Gambling Commission that it facilitates the use of textured digital weapons, known as “skins,” as collateral in online bet..."* --- ## SECTION 09: Valve AML Official Admissions **Investigative Focus:** `FTC CSGO Lotto settlement Trevor Martin deceptive endorsement` ### Executive Forensic Summary & Facts: > Trevor Martin and Thomas Cassell settled with the FTC for deceptive endorsement of CSGO Lotto, failing to disclose their ownership and payments to other influencers. The FTC mandated clear disclosures of material connections. The settlement marked the FTC's first against individual social media influencers. ### Primary Supporting Documents & Court Records: - **[FTC Reaches Settlement with Influencers; Issues Updated Guidance | Inside Privacy](https://www.insideprivacy.com/advertising-marketing/ftc-reaches-settlement-with-influencers-issues-updated-guidance)** > *"The FTC recently announced that it reached a settlement with two social media influencers, Trevor Martin and Thomas Cassell, for deceptively endorsing their owned and operated online gambling service “CSGO Lotto” without disclosing that they were the owners of the site, as well as paying other well-known social media influencers to promote the site without requiring them to disclose the payments in their posts. In addition, the FTC issued warning..."* - **[First FTC Complaint Against Social Media Influencers Settles](https://www.lexology.com/library/detail.aspx?g=fd749cd5-bbfb-4c5a-aa0f-5d6df69d9f38)** > *"Trevor Martin and Thomas Cassell, and their company, CSGO Lotto, Inc., have settled charges of deceptive advertising. This is the first case..."* - **[CSGO Lotto Owners Settle FTC's First-Ever Complaint ...](https://www.ftc.gov/news-events/news/press-releases/2017/09/csgo-lotto-owners-settle-ftcs-first-ever-complaint-against-individual-social-media-influencers)** > *"Facebook Twitter LinkedIn Tags: The Do's and Don'ts of Social Media InfluencersTrevor “TmarTn” Martin and Thomas “Syndicate” Cassell, two social media influencers who are widely followed in the online gaming community, have settled Federal Trade Commission charges that they deceptively endorsed the online gambling service CSGO Lotto, while failing to disclose they jointly owned the company. The Do's and Don'ts of Social Media Influencers They..."* - **[FTC Approves Final Consent Order against Owners of ...](https://www.ftc.gov/news-events/news/press-releases/2017/11/ftc-approves-final-consent-order-against-owners-csgo-lotto-website)** > *"Following a public comment period, the Federal Trade Commission has approved a final consent order settling its first-ever case against individual social media influencers, the owners of the CSGO Lotto website. The Commission’s September 7, 2017 complaint charged Trevor “TmarTn” Martin and Thomas “Syndicate” Cassell, two online influencers who are widely followed in the gaming community, with deceptively endorsing the online gambling service CSG..."* - **[FTC Approves Final Settlement with Social Media ...](https://www.loeb.com/en/insights/publications/2017/12/ftc-approves-final-settlement-with-social-media-__)** > *"Client Alerts/Reports On November 29, the Federal Trade Commission announced approval of a final consent order settling its first-ever case against individual social media influencers. The FTC complaint alleged that well-known online gamers Trevor Martin and Thomas Cassell endorsed an online gambling service known as CSGO Lotto without informing their followers that they owned the online gambling company. The complaint also alleged that Martin a..."* - **[FTC Issues First Endorsement Case Against Social Media Influencers](https://www.hunton.com/hunton-retail-law-resource/ftc-issues-first-endorsement-case-social-media-influencers)** > *"On September 7, 2017, the FTC announced its first-ever case against social media influencers. In its complaint, the FTC alleged that two widely followed gamers, Trevor “TmarTn” Martin and Thomas “Syndicate” Cassell, posted messages endorsing online gaming service CSGO Lotto without disclosing that the two jointly owned the company. In addition to deceptively endorsing the service, the two are alleged to have paid thousands of influencers to promo..."* --- ## SECTION 10: Steam Subscriber Agreement Stripping Archive **Investigative Focus:** `Valve S.a r.l. Luxembourg corporate registration Steam sales` ### Executive Forensic Summary & Facts: > Valve S.à r.l. is Valve's Luxembourg subsidiary responsible for European sales. It operates as a private limited liability company. The company's address is 26 Boulevard Royal, Luxembourg. ### Primary Supporting Documents & Court Records: - **[What is Valve S.à r.l.? : r/Steam](https://www.reddit.com/r/Steam/comments/2hxe7e/what_is_valve_s%C3%A0_rl)** > *"SARL (sometimes SÀRL, Sàrl, sàrl or S.à r.l.), is a private limited liability corporate entity that exists in France, Switzerland, Luxembourg..."* - **[News - Steam Subscriber Agreement 2016 Update](https://store.steampowered.com/news/19860)** > *"Going forward, our hardware distribution in Europe will be the primary responsibility of our Luxembourg subsidiary, known as Valve SARL...."* - **[Valve Sarl, Luxembourg](https://www.datocapital.lu/companies/Valve-Sarl.html)** > *"Financial data, documents and shareholder information of Valve SARL, (valve), in 26 Boulevard Royal Luxembourg, Entity Code 8471-0874-7582-2276. Address 26..."* - **[VALVE S.A.R.L ? A SCAM ? :: Help and Tips](https://steamcommunity.com/discussions/forum/1/530645961935748406)** > *"Valve SARL is the European branch of Valve located in Luxembourg. Every EU user gets billed from Valve SARL...."* - **[VALOR 1 S.À R.L. overview - Companies House - GOV.UK](https://find-and-update.company-information.service.gov.uk/company/OE022381)** > *"Registration number: B241259. Legal form: Company Limited By Shares. Parent registry: The Luxembourg Trade And Companies Register,Luxembourg. Governing law..."* - **[Valve Corporation - Ultimate Pop Culture Wiki - Fandom](https://ultimatepopculture.fandom.com/wiki/Valve_Corporation)** > *"Alongside these changes to the SSA, the company also declared publicly the incorporation of Valve S.a.r.l., a subsidiary based in Luxembourg. Valve set up a physical office in Luxembourg Kirchberg. According to Valve's project manager Mike Dunkle, the location was chosen for eCommerce capabilities and infrastructure, talent acquisition, tax advantages and central geographic location – most major partners are accessible, with 50% within driving di..."* ---