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I am a first time Steam user. I am trying to download client for my Windows 7 machine. However I keep getting this error.

Fatal Error: Steam needs to be online to update. Please confirm your network connection.

I checked Steam forum and as per suggestion given there, I have disabled my Antivirus(AVG), but is it of no use. How can I fix this problem and install Steam?

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    If you're using Windows 7, UAC might be causing some issues. Can you run Steam as Administrator?
    – Frank
    Mar 6 '13 at 15:51
  • @fbueckert: Thanks for your reply. I tried this too, but still got same error after some time.
    – yogesh
    Mar 6 '13 at 16:00
  • Are you encountering the error when downloading Steam, installing it, or running it? That's really important to figure out.
    – Frank
    Mar 6 '13 at 16:02
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    @SevenSidedDie: Installer is downloaded. Installer is being run to download the steam client. I have completely blocked my Antivirus(AVG 2013).
    – yogesh
    Mar 6 '13 at 16:38
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    Is your firewall letting it through?
    – 3ventic
    Sep 5 '13 at 6:32
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I believe your problem may be with your antivirus software. Even though you said you disabled it some AV products can still cause issues.

Per this page from Steam Support Programs Which May Interfere with Steam

Anti-Virus Applications - Any Anti-Virus program could potentially block Steam and Steam game access, especially when not properly configured for use with Steam. Please make sure that Steam and all Steam games are listed as exceptions in these programs. If the issue persists, please try disabling or temporarily uninstalling the program to test the issue.

AVG is on the list with the following note:

We recommend that applications listed in bold with a ( * ) symbol are fully uninstalled from your system if disabling them does not resolve the issue

This looks like it may be the solution from the information you have given.

I also suggest checking this list for other programs installed to see if there could be another conflict.

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  • Thanks for your answer. I have tried all these things. Spoke to AVG tech support. They said there is no isssue with AVG.
    – yogesh
    Mar 6 '13 at 17:31
  • Is it even possible to add Steam as an exception if you can't install it in the first place? :/
    – Alex
    Mar 6 '13 at 17:37
  • There is some steam.exe. when I click on it, it starts updating. I added that in exception list. No success.
    – yogesh
    Mar 6 '13 at 17:48
  • I have Windows 7 and AVG. It doesn't cause any issues. I don't think this is the cause.
    – Frank
    Mar 6 '13 at 18:00
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    @yogesh Have you tried disabling your firewall? How is your internet set up? Are you behind a router, or are you directly connected to the modem?
    – Frank
    Mar 6 '13 at 18:51
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If you are on a router, make sure the following ports are set:

Steam Client

UDP 27000 to 27015 inclusive (Game client traffic)

UDP 27015 to 27030 inclusive (Typically Matchmaking and HLTV)´

TCP 27014 to 27050 inclusive (Steam downloads)

UDP 4380

Theres an answer on this site with the router info: What network port does Steam use?

If you need help in setting up your router, just let me know.

And note that Antivirus is one thing, and a Firewall another. Make sure that not just one of them allows Steam, but both! Incoming and outgoing traffic!

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