Sony Sued For £5B Over Claims Of Exorbitant PlayStation Store Prices

Sony is being sued for £5 billion for the accusation of ripping people off its online store. This legal claim is led by Alex Neill, ex-managing director of Which UK. It was filed last week with the Competition Appeal Tribunal. It claims that Sony is breaching the competition law by charging a 30% commission on digital games and in-game purchases on the PlayStation Store.

Accusation On Sony

Sony is accused of abusing the power it has in the market by imposing unfair terms and conditions on both game developers and publishers. As per a report by Sky News, this has forced increased prices for consumers.

On the other hand, there are reports that the 30% cut from Sony is an industry standard. It is said to be in line with other game companies such as Microsoft, Steam, and the App Store. It remains unclear why Sony is the sole target of this legal claim.

As per the legal action taken against Sony, consumers have been charged as much as £5 billion in the past six years. Any consumer in the UK who has purchased content on the PlayStation Store since August 19, 2016, is included in the legal claim. It is said that almost nine million people are likely entitled to get compensation. This would put damages per individual between £67 and £562 without the interest.

Regarding the legal claim, Neill stated that she is standing up for the millions of UK people who have been unwittingly overcharged. She said that they believe Sony has abused its position and ripped off its customers.

Natasha Pearman, the legal partner leading the case said that Sony dominates the digital distribution of PlayStation games and in-game content. It has deployed an anti-competitive strategy which has resulted in excessive prices to customers that are out of all proportion to the costs of Sony providing its services.