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Steam :: Introducing Steam Families
(steamcommunity.com)
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I experimented around with it in the beta out of curiosity.
I'm assuming this is based on account region (i.e. purchase region) and not IP.
Wireguard makes everyone one big happy family!
If this is based on store region, VPN is not enough. You'll need a payment method from that country as well.
Assuming it is store country that is checked: Simply VPN-ing doesn't change that. Instead you have to make a purchase in the new place with "a payment method from the region you have moved to". From experience this locks your account to the new region for 3 months. What would be interesting to know is if you can be in a family and then change regions afterwards without getting auto-kicked.
Needless to say, my experiments ended at trying to see if they have any kinds of restrictions in place (unlike for the original family share) and I don't wanna buy a throwaway game and lock an account into a different region for 3 months just for shits and giggles.
You should remember that valve already threatened VPN users after everyone was buying games in Argentina.
They mean you vpn into your home network.
Worth noting that this could also potentially be due to differences in censorship/rating laws across country lines. For instance, Germany has some strict regulations regarding Nazi imagery in media. So games need to have a specific Germany-friendly version if they feature that kind of imagery. And Steam may not be able to serve two different versions of the game with a single license.