Sony has been sued for £5 billion ($5.9 billion) over the online PlayStation Store prices, which the plaintiff claims that Sony is over-charging consumers and abusing its position as the primary seller of PlayStation games digitally.
As per media reports, consumer rights advocate Alex Neill – the ex-managing director of non-profit consumer advice organisation has been leading the legal action and said “the game is up for Sony PlayStation”.
The actions of Sony is costing millions of people who can’t afford it: Alex Neill
The lawsuit has been filed with the Competition Appeal Tribunal on 19 August, stating that consumers have been overcharged for digital purchases of games and DLC as Sony is charging a 30% commission. “With this legal action I am standing up for the millions of UK people who have been unwittingly overcharged,” said Neill. “We believe Sony has abused its position and ripped off its customers.”
He further added, “Gaming is now the biggest entertainment industry in the UK, ahead of TV, video, and music, and many vulnerable people rely on gaming for community and connection. The actions of Sony is costing millions of people who can’t afford it, particularly when we’re in the midst of a cost of living crisis and the consumer purse is being squeezed like never before.”
The lawsuit is based on the fact that as the primary and dominant seller of digital PlayStation products, Sony has been in a position to overcharge for its items. The legal action addressed the fact they are doing exactly that and hence forcing consumers to overspend unfairly and, as a result, is in breach of competition law.
“Sony dominates the digital distribution of PlayStation games and in-game content,” said Natasha Pearman, the legal partner leading the case. “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.” The estimated damages per individual over the last six years range from £67 (around $79) to £562 (around $664), excluding interest, which amasses to £5 billion total, the lawsuit claims.
