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Usually ugly american shovelware porn games get accepted. And again not Steam should decide.
Steam moderators only make decisions in the forums and with some user content. They are a 3rd party company, paid by Valve to moderate.
The decision on games in directly by Valve.
Loli isn't allowed. It is a can of worms that Valve isn't willing to open.
Rape games exist on Steam (debatable if they should or not), though they are nothing I am interested in, as with most Adult Only games. So that is unlikely to be reason a game is not allowed.
There are plenty of Anime/Hentai adult only games on Steam, not just "ugly american shovelware."
And yes, these are things that Valve SHOULD decide as it is THEIR store and their company's future is effected by their decisions.
I am sure there are many other places you can acquire such games, aside from Steam. Some games just won't make it here, and by the sounds of it, for good reason.
Thats not how it works, countries don't screen games before they are released. If the game is released, and a complaint is filed and the law gets involved the publisher and any store hosting the game can get in trouble and face significant fines, bad press, or even be shut down.
It's not stupid and as you even admitted the char is a loli. Using the excuse that its a robot and not an actual underage girl doesn't change the appearance. Also no publisher will ever get to decide what is or isn't legal.
So that is why if it appears to push the border and feature underage chars Steam tends to veer on the side of caution as it could put them out of business.
Also steam moderators have nothing to do with it, the decision is made by their actual staff.
Do you have any idea how ridiculous that sounds?
Credit card companies wouldn't cut such a huge profit. Steam's general reputation would be better for the customers (gamers).
They force publishers to censor games, so players have to download uncensor patches.
No, it really wouldn't. No company wants to be associated with such things, at least not in the wider world. It could kill companies to be.
And I doubt they make much off of such games anyways.
The only ones that use patches are those from before Steam had the Adult Only settings and policy in place. Very rarely are they censored and typically only to remove the content you seem to interested in getting.