Sony hit with huge $7.9 billion lawsuit over ‘unfair’ PlayStation Store prices: report

Highlights
  • A London tribunal recently mandated Sony to face a significant lawsuit which translates to over Rs 6,500 crore.
  • The allegations focus on claims that the PlayStation maker has misused its dominant position.
  • Sony Interactive Entertainment faced a lawsuit last year on behalf of almost 9 million people in the UK.

A London tribunal has ruled this week that Sony will have to confront a substantial lawsuit, valued at up to 6.3 billion pounds ($7.9 billion), which is more than Rs 6,500 crore. The claims revolve around allegations that the PlayStation manufacturer misused its dominant position, resulting in unfair prices for customers.

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Last year, a lawsuit was filed against Sony Interactive Entertainment (SIE) on behalf of nearly 9 million individuals in the UK. These individuals had purchased digital games or add-on content through Sony’s PlayStation Store.

Lawsuit challenges Sony on PlayStation Store pricing

According to a report by Reuters, consumer advocate Alex Neill, known for previous campaigns, is leading a case against Sony. The case is valued at up to 5 billion pounds ($6.23 billion) plus interest. Lawyers representing Neill mentioned in court filings last month that the total damages estimate for the case is up to 6.3 billion pounds.

The advocate stated the company misused its strong position by mandating that digital games and add-ons could only be purchased and sold through the PlayStation Store, which imposes a 30 percent commission on developers and publishers.

The claim asserts that as a result, customers have ended up paying elevated prices for games and add-on content compared to what they might have paid otherwise.

On the other hand, Sony’s legal team contended that the case had fundamental flaws and should be dismissed. However, the Competition Appeal Tribunal decided that Neill’s case could proceed.

The tribunal also specified that individuals who made PlayStation Store purchases after the case was initiated in 2022 should be excluded from the proposed group of claimants.

Meanwhile, in April this year, Sony launched its first PlayStation-exclusive store in Delhi, India. This store serves as a single destination for various Sony gaming console essentials, covering items like the PlayStation, Dual Sense gaming controllers, headsets, and more.

The store visuals showcase PlayStation Plus membership plans, providing players with entry to an extensive game collection. These plans’ vouchers are available for purchase in the store and can be activated through the offline website.