Valve is actually smaller than Larian, but in terms of pure money-making efficiency there's nobody bigger.
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And the share of Valve in the computer video game market is around 75% and even more than 80% in Europe. This company is clearly in a monopoly situation that prevents any competition. This situation is clearly undesirable.

There’s Xbox, but when that’s the alternative it is clear why Steam still dominates

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The problem does not come from other plateforms but from the abuse of dominant position.

having a monopoly isn’t illegal but abusing it is

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In what way did Valve abuse their monopoly position?

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They’re not preventing competition. Valve did not go out of its way to kill Epic, Epic just sucks. They’re not doing anything to kill GOG either.

There’s a difference between a monopoly, and people just choosing one thing over another.

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