Sony is facing a £2 billion ($2.7 billion) class-action lawsuit in the UK, with millions of PlayStation users alleging that they have been victims of "excessive and unfair" download charges over nearly a decade.
Key Takeaways
A £2bn class-action lawsuit against Sony alleges that PlayStation users have been overcharged for digital downloads due to a monopolistic business model. The case is being heard at London's Competition Appeal Tribunal and could affect up to 12.2 million UK users.
- A £2bn class-action lawsuit accuses Sony of unfairly charging PlayStation users for digital content
- The case claims Sony's monopoly on digital sales allows it to set excessive prices
- Up to 12.2 million UK users could be eligible for compensation if the case succeeds
- Sony defends its business model, citing security risks and subsidies for console sales
The case, brought by consumer campaigner Alex Neill on behalf of an estimated 12.2 million users, claims that Sony's business model prevents players from purchasing digital products outside of its own "closed ecosystem." According to the claimants, this monopoly allows Sony to set retail prices at a target margin of 30% above the level of wholesale prices.
Opening the case for the claimants, Robert Palmer KC argued that Sony had implemented a sustained strategy to exclude competition over digital distribution of products by monopolizing their sale through the PlayStation Store. He further claimed that users faced restrictive license conditions that prevented them from seeking to bypass those controls and obtain digital content from elsewhere.
Sony has defended its business model, arguing that third-party stores pose a security risk and that it uses software sales to subsidize the sale of its consoles. The company also maintains that the commission it takes from digital sales is part of a strategy to cover the costs of its consoles, which are sold at a relatively low profit margin.
The case is expected to last 10 weeks and comes amidst a wave of similar class-action lawsuits targeting digital sales platforms. A similar case against PC games platform Steam was allowed to proceed last month, and in October, the Competition Appeal Tribunal found that Apple abused a dominant position to charge developers commissions of up to 30% on purchases from its App Store.
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