Sony faces £6.3 billion lawsuit over PlayStation Store pricing

Sony faces £6.3 billion lawsuit over PlayStation Store pricing

25/11/2023 Off By James Ross

In a landmark decision on Tuesday, a London tribunal ruled that Sony must confront a substantial lawsuit amounting to £6.3bn for allegedly exploiting its dominant position within the gaming industry, leading to unjust pricing for consumers.

The lawsuit, filed against Sony Interactive Entertainment last year, represents nearly nine million individuals in the United Kingdom who purchased digital games or add-on content through Sony’s PlayStation Store.

Spearheaded by Alex Neill, a prominent consumer advocate renowned for prior campaigns, the case seeks damages valued at £5bn alongside accrued interest.

Neill’s legal team, in court filings last month, estimated aggregate damages at a staggering £6.3bn. The crux of the accusation centres on Sony’s alleged misuse of its dominant status, compelling digital game purchases and add-ons exclusively through the PlayStation Store, which imposes a 30% commission on developers and publishers.

The claim contends that this practice resulted in inflated prices for games and additional content, surpassing what customers might have paid otherwise. Sony’s defense countered, labeling the case as “flawed from start to finish” and urged its dismissal.

However, the Competition Appeal Tribunal ruled in favour of allowing Neill’s case to proceed, albeit with the exclusion of individuals who made PlayStation Store purchases subsequent to the case’s filing in 2022 from the proposed claimant class.

In a statement following the ruling, Neill emphasised that this decision marks “the first step in ensuring consumers get back what they’re owed.”