£2bn class action claims UK PlayStation users are overcharged for games
The claim is being brought on an ‘opt out’ basis, meaning eligible consumers are automatically included unless they specify otherwise.
A £2 billion class action will claim that millions of PlayStation users in the UK are overcharged for games on the console in the latest legal challenge against technology firms’ market dominance.
The case, brought by consumer champion Alex Neill on behalf of an estimated 12.2 million gamers, accuses Sony of levying “excessive and unfair” charges on downloads from its PlayStation Store.
The antitrust claim is set to be heard by the Competition Appeal Tribunal in London from next week.
PlayStation games were originally supplied on discs when the console launched in the UK in 1995, but most are now downloaded for the latest PS5 model.
The PS5 has sold more than 90 million units since its release in 2020, becoming one of the top 10 best-selling games consoles.
Its cheapest model does not have a disc drive, although the standard version retains the option for physical media.
The case claims Sony has unfairly profited from the shift to digital, which has been driven by changing consumer preferences and faster internet connections.
Robert Palmer KC, representing the claimants, said in court documents that Sony’s “closed ecosystem” has rendered digital users an “entirely captive class”.
The lawsuit argues that Sony eliminates competition by prohibiting rival download systems and uses its market power to charge developers and publishers a 30% commission on digital purchases, which is then passed on to consumers.
The claim is being brought on an “opt out” basis, meaning eligible consumers are automatically included unless they specify otherwise.
Anyone who bought a digital PlayStation game or an in-game download over a period of about 10 years to February this year could be eligible for compensation if the lawsuit is successful.
The claimants’ legal team estimates that the claim covers 12.2 million users, who could be in line for £162 each, equating to almost £2 billion in total.
This is an estimate of how much they have been allegedly overcharged, plus 8% interest.
Sony, in its defence to the claim, has told the court that its distribution model is justified, partly because permitting third-party stores for downloads would introduce security and privacy risks.
The company has also said it invests heavily in hardware, selling consoles at a relatively low margin to build a user base, and that the commission on digital sales is part of a cross-subsidisation strategy to cover these costs.
The case is the latest class action lawsuit in the UK to target digital sales of software for various platforms.
In October, the Competition Appeal Tribunal found that Apple abused a dominant position to charge developers commissions of as much as 30% on purchases on its App Store.
Apple is appealing against the decision.
A lawsuit brought by consumer group Which? accusing Qualcomm of abusing a dominant position to overcharge Apple and Samsung to use its chips in smartphones was withdrawn last month.
The Sony tribunal is scheduled to begin on March 10 and is expected to last for 10 weeks.
