Approximately 15,000 Steam users have filed a proposed class action lawsuit against Valve Corporation, alleging the company has refused to pay nearly $21 million in arbitration fees related to individual antitrust claims. The lawsuit, filed in the U.S. District Court for the Western District of Washington, accuses Valve of breaching its April 2023 arbitration agreement and failing to comply with arbitration obligations in an ongoing Steam-related legal dispute.
The complaint, brought by New York resident Jeffrey Smith on behalf of thousands of gamers, asserts that Valve has refused to pay $20,875,400 billed by the American Arbitration Association (AAA). These fees are necessary to proceed with approximately 15,000 individual arbitration claims filed by Steam users, who allege that Valve violated antitrust laws by inflating prices on its popular digital game distribution platform.
Despite Valve’s arbitration agreement requiring dispute resolution through arbitration, the company has withheld payment of the arbitration fees, resulting in a suspension of the arbitration proceedings. Plaintiffs argue Valve’s refusal constitutes a willful breach of contract, especially given the company’s substantial market value.
The underlying antitrust lawsuit originally began in January 2021, with claims that Valve’s use of a most-favored nations policy imposed unfair terms on game developers and artificially increased prices for consumers. Multiple class actions from both gamers and developers have since been consolidated.
In June 2025, another Steam user, Ryan Lally, requested court sanctions against Valve for its failure to pay arbitration fees despite previously agreeing to arbitrate. Valve denies refusing arbitration and insists it has complied with arbitration rules, though the AAA ultimately declined to reissue an invoice requested by the company.
Smith and over 70,000 Valve customers are now represented by Mason LLP, pursuing their antitrust claims in arbitration and seeking court certification of the class. The lawsuit demands Valve pay the outstanding $21 million in arbitration fees, proceed with arbitration, and provide damages, attorney fees, and costs to affected consumers.
