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Valve can remove games from sale for any reason they like - it’s been a point of consumer contention when they are accused of censorship for certain risque anime games, too.
If a game lets you buy it in Tanzania, download it in Tanzania, and then to play, has you sign an agreement that says “I truthfully state that I do not live in Tanzania”, then that bone-headed agreement reflects poorly on Valve, so they have almost a legal need to take it out of sale in that country.
Basically, each country has its own laws of sale. Having those switches to turn off sales in certain places is important for the store’s own safety. While 60% of the blame for selling a faulty product goes to the manufacturer, 40% still goes to the storefront that chose to stock and sell that faulty good. In this case, the fault was specific to the country of play.
That’s right, I have heard of some of these cases, but thank you very much for the info! I definitely didn’t want Sony to have any ground to stand on here, so happy that Valve is able to step up to protect consumers however they can.