Sony is confronting a mass lawsuit amounting to $7.9 billion in the UK over the pricing practices on the PlayStation Store

22 Nov, 2023

Sony is confronting a mass lawsuit amounting to $7.9 billion in the UK over the pricing practices on the PlayStation Store

In a landmark decision, a London tribunal has ruled that Sony must confront a mass lawsuit worth up to £6.3 billion ($7.9 billion). The lawsuit alleges that the gaming giant, through its subsidiary Sony Interactive Entertainment (SIE), abused its dominant position, leading to unfair pricing for customers using the PlayStation Store.

Initiated last year on behalf of nearly nine million UK residents who purchased digital games or add-on content through the PlayStation Store, the case is spearheaded by consumer advocate Alex Neill. Neill contends that Sony's monopolistic practices mandate the buying and selling of digital games and add-ons exclusively through the PlayStation Store, which imposes a hefty 30% commission on developers and publishers.

The claim asserts that this monopoly has resulted in customers paying elevated prices for games and add-on content compared to what they would have paid in a more competitive market. Sony, however, has vehemently contested the lawsuit, arguing that it is "flawed from start to finish" and should be dismissed.

Despite Sony's objections, the Competition Appeal Tribunal has ruled in favor of Neill, allowing the case to proceed. Nevertheless, the tribunal excluded individuals who made PlayStation Store purchases after the case was initiated in 2022 from the proposed claimant class.

In response to the tribunal's decision, Neill issued a statement expressing satisfaction, stating that the ruling represents "the first step in ensuring consumers get back what they're owed." Sony has yet to respond to the ruling or provide any comment on the ongoing legal proceedings. As the lawsuit unfolds, it raises significant questions about the gaming industry and the impact of dominant market positions on consumer pricing.