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You may be getting this error when trying to start a
steam:// URL because of a faulty registry. This problem may occur if you transfer Steam to a different drive/directory.
1. To repair it, you should change the value of
HKEY_CLASSES_ROOT\steam\Shell\Open\Command so it matches to that of the new drive/directory.
If your old Steam directory was
C:\games\Steam, then the value of the key should look like this:
Then, if you moved Steam to
D:\games\Steam. The new key value should be changed to reflect the transfer:
2. Another solution for this problem, for those of you who don't want to mess with the registry is to re-run the Steam Installer and specify the new directory you will be using for Steam when completing the installation process.