London (AFP) – A trial opened in London on Tuesday over a £2 billion ($2.7 billion) class action lawsuit that accuses Japanese entertainment giant Sony of breaching competition law by allegedly overcharging millions of UK PlayStation users. The claimants argue that Sony has excluded competition and imposed excessive charges on digital games sold through its PlayStation Store for nearly a decade.
“Sony have abused that position by charging consumers too much money,” 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 implemented a sustained strategy to exclude all actual and potential competition from the digital distribution markets,” Robert Palmer, a lawyer representing the claimants, told the Competition Appeal Tribunal. According to the claimants, the game “Assassin’s Creed Shadows” is sold on the PlayStation Store for nearly £70, roughly double the price of the physical edition at UK retailer Currys.
They also argued that Sony charges an excessive 30 percent commission, while PC game distribution platforms — which face greater competition — typically charge lower fees. “It is clear on the evidence that the profitability of the PlayStation system is far from excessive,” Sony said in its legal submissions shared with AFP. If you account for the total price of the console and the game, “its digital content is priced at similar levels to that on other platforms and…similar prices to discs,” the company said.
Sony added that if the prices were not comparable, “consumers and publishers would simply go elsewhere.” 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.
“We’re aware of other cases that are being pursued,” including in Australia, the Netherlands, and Portugal, said Natasha Pearman, a partner at Milberg London, one of the claimants’ lawyers. “So it’s a global strategy, essentially, that’s been adopted,” she added. 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
