Sony denies overcharging UK PlayStation gamers in £2bn lawsuit
In the latest legal battle against tech firms’ market dominance, a class-action lawsuit worth £2bn is set to be launched alleging millions of PlayStation users in the UK have been overcharged for games on the console.
The lawsuit, filed by consumer champion Alex Neill on behalf of an estimated 12.2 million gamers, accuses Sony of charging “excessive and unfair” fees for downloads from the PlayStation Store.
The antitrust claim is scheduled to be heard at the Competition Appeal Tribunal in London from next week.
PlayStation games were initially available on discs when the console was launched in the UK in 1995, but many are now available as downloads for the latest PS5 model.
PS5 has sold more than 90 million units since its launch in 2020, becoming one of the 10 best-selling game consoles.
Its cheapest model has no disk drive, but the standard version retains the physical media option.
The lawsuit alleges that Sony has unfairly profited from the shift to digital due to changing consumer preferences and faster internet connections.
Robert Palmer KC, representing the plaintiffs, said in court documents that Sony’s “closed ecosystem” made digital users “a completely captive class.”
The lawsuit argues that Sony eliminates competition by banning rival downloads and uses its market power to charge developers and publishers a 30% commission on digital purchases, which is then passed on to consumers.
The claim is made on an “opt out” basis; This means that eligible consumers are automatically included unless stated otherwise.
Anyone who purchased a digital PlayStation game or in-game download in the approximately 10-year period until February this year will be eligible to receive compensation if the case is successful.
The claimants’ legal team estimate that the claim covers 12.2 million users and that they could be in line for £162 each, or almost £2 billion in total.
This is an estimate that they were charged more than claimed plus 8% interest.
Defending the claim, Sony told the court that its distribution model was justified in part because allowing third-party stores for downloads would create security and privacy risks.
The company also said it is investing heavily in hardware, selling consoles at relatively low margins to build its user base, and that its digital sales commission is part of a cross-subsidization strategy to offset those costs.
The case is the latest class action in the UK targeting the digital sale of software for various platforms.
In October, the Competition Appeal Tribunal found that Apple had abused its dominant position by charging developers commissions of up to 30% on purchases on the App Store.
Apple is appealing the decision.
The lawsuit filed by the consumer group Which? The claim, which accused Qualcomm of abusing its dominant position by overcharging Apple and Samsung to use its chips in smartphones, was withdrawn last month.
Sony’s trial is scheduled to begin on March 10 and is expected to last 10 weeks.
