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For Germany, blocking some "adult" titles might even earn them praise from activist groups, so that's their solution.
Later, when every game had to have an age rating, blocking those that did not was the easy way (and, considering that they only need to fill out a questionaire provided by Steam, that's the part of their censoring infrastructure that I don't have much of an issue with).
UK seems to be much stricter, so Steam had to add something real. In line with their usual policy, they made it a credit card verification because they already had all the components for that, so while that p*s off some UK customers, it was very cheap to implement.
That really is the answer isn't it? Steam just half-asses when it comes to this.
It's the same regulation and it even applies now to the whole EU.
UK has technically (of course a few details are different) the same setup of laws now like germany if it is about adult games (outside of games very different please do not make that a topic).
So what the UK has now is something we germans want for over a decade and always just got "Nope, not gonna happen"... And seeing that it CAN happen on steam is infuriating as hell. I had to buy many games for more than they cost to get my hands on them because of those blocks.
As I understand it, there is a subtle difference.
In Germany games must have an age advisory. If games do not have an advisory, then they are banned.
In the UK games that have an age advisory of 18+ require age verification.
The difference is not down to Steam, it's down to the wording of the law.
Here is how it works:
If a developer/publisher does not request an USK Rating (Expensive for physical copies, free for stuff like GooglePlay Store, Steam, Apple Store, GOG etc) the game must be treated as Adult Only game.
We have for that "List A" and "List B"
Games that are "indexed" or have no age rating are on List A or are treated as List A as non-age rated games are not on the list but get treated as such. List A means they may not be sold to people under 18. That means in the Shop where you buy it you have to show your ID, same if you want to buy them online. You must ID Verify.
Games on List B are Banned from buying.
At least that system was used until 2021 and all games slapped onto these lists still stay as that.
From 2021 onwards we had no new entries that forbid any selling so there is no game that was released after 2021 that steam could not sell to us. EVERY SINGLE GAME on steam from 2021 is 100% sellable to us, no exception.
All they need to do for adult only games is: Age Verification
It's the very same as the current UK Situation. No difference