LONDON: Sony is being accused of “ripping people off” and is being sued for £5 billion ($5.9 billion) in the UK for allegedly overcharging digital gamers’ purchases on its PlayStation Store.
The collective lawsuit, brought forward by consumer rights campaigner Alex Neill, claims Sony abused its market position and breached competition law by imposing a cut for every purchase made on the PlayStation Store.
“The game is up for Sony PlayStation,” Neill said. “With this legal action, I am standing up for the millions of UK people who have been unwittingly overcharged. We believe Sony has abused its position and ripped off its customers.”
Neill accuses Sony of applying a 30 percent commission on every purchase and claims that the company has profited by overcharging customers a total of £5 billion over the last six years.
The class action, representing up to 9 million plaintiffs living in the UK, includes anyone who has purchased digital games or add-on content on their console or through the PlayStation Store since Aug. 29, 2016.
In the claim submitted to the Competition Appeal Tribunal on Friday, Neill and her lawyers estimate that individual members are entitled to compensation ranging between £67 and £562, excluding interest.
“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 are 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,” Neill argued.
Sony’s cut on every purchase made is in line with industry standards. Steam, Microsoft, Nintendo and the App Store all charge a 30 percent fee while Epic takes a lower 12 percent commission.
It is unclear whether the action demands that Sony stop taking any commission on third-party sales on its digital store or that the 30 percent should simply be decreased.
“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,” said Natasha Pearman, the lawyer leading the case.
“This claim is only possible because of the opt-out collective action regime that was introduced by the Consumer Rights Act 2015. We are looking forward to working with Alex and making sure that the regime achieves its aims of protecting and compensating consumers.”
