As reported by NRK, PlayStation is now facing a lawsuit from consumer rights advocates in the United Kingdom.
The UK Competition Appeal Tribunal approved the case to proceed to court this week on Tuesday, November 21, 2023.
The organization “Playstation, You Owe Us,” led by consumer rights advocate Alex Neill and represented by the law firm Milberg London LLP, will lead a class-action lawsuit on behalf of 12.2 million British users.
The claim covers all UK customers of the PlayStation Store from August 2016 to this year, unless they opted out on the lawsuit’s website.
The potential cost to Sony is estimated at £2.67 billion (34.6 billion Norwegian kroner), based on the amount consumers may have been overcharged over time, plus interest.
“Monopolistic Behavior”
Currently, games playable on PlayStation must be purchased through the PlayStation Store.
This practice is alleged to be monopolistic behavior.
The lawsuit argues that it is illegal in the UK for a company to abuse its dominant market position.
Digital console games are often noticeably more expensive than the same or comparable titles elsewhere, a trend that has become increasingly common as physical media declines.
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Console manufacturers have long practiced selling consoles at a low price point, recouping costs through higher prices on games and accessories—particularly AAA titles, which can now cost upwards of $100.
Third-party publishers must pay Sony 30 percent of the sales price for the privilege, and Sony itself sets the price for all games in the PlayStation Store.
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The lawsuit contends that What we have is unduly strict and expensive for consumers, and therefore a violation of UK competition law.
Digital purchases can often cost significantly more than physical copies, if physical copies are even an option. Many consoles no longer offer that functionality.
The closed ecosystem creates a captive audience for consumers, according to documents from the claimants reviewed by The Independent.
“Security Risk”
Sony argues the class-action is “fundamentally flawed” and points out that both Xbox and Steam require similar shares of sales on their platforms.
Sony contends that allowing third-party sellers to distribute games on the platform, independent of the PlayStation Store, would pose a security risk to consumers.
Subsidizing the console through game sales is also presented as a consumer-friendly measure, making the platform more accessible in the first place.
Sony is not alone in facing resistance over these types of walled-garden digital marketplaces.
The lawsuit is similar to the issues Apple has faced in its dispute with Epic Games and others, regarding Apple’s monopoly around the App Store.
That case resulted in a loss for Apple in British court in October, a ruling Apple is currently appealing.
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The trial against Sony is expected to last the next ten weeks.
