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It helps prevent account sharing.
"prevent account sharing" - for different games? That's stupid. And can be dodged for any offline game, so - what's the point? This dumb rule just trying to say: "stop using our "steam" malware, buy games from devs directly - or pirate them, if you don't want any troubles".
Many years ago before Steam was created people would use copied games and share game codes allowing people to play online games all using the same game code. One of those games was Counter-Strike, Steam was then created which stopped people from sharing game codes and using pirated copies of the game because now the game code was locked down to a Steam account.
Locking games down to an account stopped people from playing pirated games online. Because of this Steam has always been a single user account, not a family account, not a sharing account but a single user account. That means that only one person can be playing a game at anyone time from their account. Yes some games can be played using Family Sharing but the rule still stands, only one user playing a game while connected to the internet.
Yes people can go offline and people can get around the rule of having only one game being played at one time but you cannot play online games. This is not a bug but it is by design and has been like it since day one.
World Online Network? Was no fooling that.
The reason steam doesnt let you do it is for account security. Most people will only have one person logging on their account, them.