Sony Faces $7.9 Billion Lawsuit Over PlayStation Store Pricing

In a significant development, Sony is set to face a $7.9 billion lawsuit over allegations of overcharging consumers for games and in-game purchases on its PlayStation Store. The Competition Appeal Tribunal (CAT) ruled in favour of consumer rights advocate Alex Neill, who initiated the suit in August 2022, accusing Sony of violating competition law and imposing unfair terms on game developers and publishers.

The lawsuit contends that Sony’s market power and terms and conditions have led to increased selling prices for games on the PlayStation Store. The argument revolves around the mandatory purchase of digital PlayStation games and DLC through the store, where Sony claims a 30% cut of all sales. This alleged practice, according to the suit, results in consumers paying inflated prices, with the amount Sony takes deemed disproportionate to the company’s incurred costs in facilitating sales.

The class action suit asserts that consumers have been overcharged by £5 billion ($5.9 billion) plus interest over the last six years, affecting around nine million people. Successful claims could result in damages ranging from £67 ($84) to £562 ($704) per person.

Sony attempted to block the case, asserting its flawed nature, but the CAT has now granted approval for the trial to proceed. Notably, the tribunal excluded individuals who made PlayStation Store purchases after the case was filed last year from the proposed claimant class.

Alex Neill expressed the significance of this decision, stating, “This is the first step in ensuring consumers get back what they’re owed as a result of Sony breaking the law. It is significant that the competition court has recognized Sony must explain its actions by ordering them to trial.”

The lawsuit leverages the opt-out collective action regime introduced by the UK’s Consumer Rights Act 2015, making it easier for consumers to bring private actions for damages suffered due to competition law infringements on behalf of an entire class. A similar case in the US accusing Sony of anti-competitive behavior was dismissed last year.

UK residents who purchased digital games or in-game content on the PlayStation Store between August 19, 2016, and August 19, 2022, have the opportunity to join the lawsuit for potential compensation.