London (AFP) – Japanese entertainment giant Sony will face a £2 billion ($2.7 billion) class action lawsuit starting Tuesday in London, accused of allegedly breaching competition law by overcharging millions of UK PlayStation users. The claimants’ website accuses Sony of “exploiting its UK customers” for nearly a decade by charging them “too much for PlayStation digital games and in-game content.”
“This case seeks to bring that conduct to an end and to secure compensation for those affected,” consumer campaigner Alex Neill, who brought the action on behalf of an estimated 12.2 million users, told AFP. The PlayStation Store is the official digital platform where gamers can buy Sony classics like “Gran Turismo” and “God of War,” as well as blockbuster titles like “Call of Duty,” “GTA,” and “Assassin’s Creed” from other studios.
“Sony has a near monopoly on the sale of digital games” for its console, allowing it to dictate prices and charge a 30 percent sales commission to video game publishers, the claimants allege. According to the claimants, PC game distribution platforms — which face greater competition — charge a lower commission of around 12 to 20 percent.
“Games are now designed to incentivise players to spend as much money as possible (including children),” the claimants’ website alleges, including for players to “progress, unlock more features, or customise their experience with new characters or weapons.” Sony’s prices “are out of all proportion to the costs of Sony providing these services to its customers,” they said.
The trial is due to be heard at the Competition Appeal Tribunal in London and is expected to last around 10 weeks. The lawsuit launched in 2022 is seeking £1.97 billion in damages, to be shared by anyone who purchased digital games or add-on content via the PlayStation store in the decade leading to February 2026, with some limited exceptions. Under UK law, all potentially affected persons are included in this type of class action by default, and may benefit from possible compensation, unless they voluntarily opt out.
Sony did not immediately respond to AFP’s request for comment, but in its defence to the claim argued that its distribution model is justified. Last year, Apple lost a lawsuit in London for abusing its dominant position and charging excessive commissions on its in-house App Store. The US tech giant, which has said it intends to appeal the decision, could be liable to reimburse millions of users.
© 2024 AFP
