When u activate for free - u get free license, and when with a key you get retail one. Not sure it is much of a difference, but at least a formal one there is. And this key is given away by IG, isn`t it funny to report to IG itself about it? What is the point?
I don't see the point too when someone reports a user doing a giveaway with a free game. As long as it is a valid steam key and game gives +1 in the library it is ok. They don't go against any rule. It is a valid Steam key that was could be given free but in if you check license list you can see it is listed as a retail key. Another scenario could be a user bought the key when it was paid game and after the game went free for example Postal. Anyway Indiegala will see the reports and decide what to do.
I can understand to report instead when they do giveaways with keys that are not Steam key and they are from other platforms (origin, gog, epic games etc) or they are ingame codes, beta, demo or any other key that is not steam.
It's a site rule, it not differentiate between keys, if a game is free on Steam it cannod be made a giveaway no matter what.
My friend, I haven't nowhere seen this rule, if you read their terms they mention just steam keys but they don't specify if free or not
Giveaways — IndieGala help & documentation portal 1.2 documentation