Sony faces $2.7 bn class action from UK PlayStation users
Summary
Sony is set to defend against a £2 billion ($2.7 billion) class action lawsuit in London, beginning Tuesday, accusing the company of breaching competition law by overcharging millions of UK PlayStation users for digital games and in-game content. The lawsuit, brought by consumer campaigner Alex Neill on behalf of an estimated 12.2 million users, alleges that Sony exploited its customers for nearly a decade due to its near-monopoly on digital game sales for the PlayStation console. Claimants argue that Sony’s 30% sales commission charged to video game publishers is excessive compared to the 12-20% commission charged by PC game distribution platforms. They also contend that Sony’s pricing is disproportionate to the cost of providing services. The trial, expected to last around 10 weeks at the Competition Appeal Tribunal, seeks £1.97 billion in damages for purchases made through the PlayStation Store between 2016 and February 2026. This case follows a similar lawsuit against Apple, which lost a case in London for abusing its dominant position and charging excessive App Store commissions.
(Source:The Economic Times)