Sony Playstation is in trouble as it faces a £5 Billion Lawsuit in the UK. Continue reading further to know all the details about the Sony Playstation Lawsuit.

According to claims that Sony PlayStation overcharged millions of PlayStation customers, it violated competition law. A lawsuit filed by consumer rights expert Alex Neill in the UK’s Competition Appeal Tribunal, which hears antitrust claims, could result in compensation for 8.9 million gamers if it is successful.

A Sony PlayStation lawsuit alleges that Sony PlayStation abused its market position by charging PlayStation game developers and publishers unfair terms and conditions. As a result, consumers are being charged unfair prices every time they buy digital games or in-game content from the PlayStation store. To know more details about the Sony Playstation Lawsuit, read below.

Playstation store
Playstation store

Sony Playstation Lawsuit

According to the lawsuit, Sony’s unlawful anti-competitive practices have resulted in customers suffering aggregate losses between £0.6bn and £5bn, excluding interest, resulting from 9.9 million members of the proposed class action. The Sony Playstation lawsuit claims that anyone who bought digital games or add-ons through the PlayStation store or on their console since August 2016 is included in the lawsuit and is eligible for compensation, ranging from £67 to £562 per person excluding interest.

BT, Apple, Qualcomm, and others are being sued by millions of consumers through a US-style class action antitrust lawsuit filed at the Competition Appeal Tribunal (CAT). After the 2015 Consumer Rights Act enabled consumers and businesses to file collective lawsuits over alleged competition law violations, the CAT is able to hear these claims. In order to proceed to trial, the CAT must first certify each individual claim, including the Sony case. 

What is the problem with Sony?

Sony’s terms and conditions seem to be at the heart of the argument over developers and publishers who want to sell games on PlayStation stores. A 30% cut is taken from every purchase, similar to that of Steam, Xbox, and Epic (a lower 12% cut is taken by Epic).

The suit does not specify whether Sony should not be taking any commission on third-party sales on its digital stores, or if it should just reduce the 30%. Last month, Sony succeeded in convincing a US court to dismiss another lawsuit alleging anti-competitive practices by Sony.

Sony was alleged to have monopolized the PlayStation market by selling only digital copies of PlayStation games on the PlayStation Store, according to the lawsuit. Nevertheless, the ruling required that the plaintiffs – a group of players who purchase games from the PlayStation Store – proved that the decision to sell only PlayStation Store games was an attempt to reduce competition and that it ended a profitable business.

Playstation Stars
Playstation Stars

The Sony Playstation lawsuit was filed on Friday. It is being backed by Woodsford, a litigation funder. If it proceeds, Milberg London’s Alex Neill will become the class representative.

A consumer technology organization, the Resolver Group, is run by Neill, who said collective proceedings such as this are crucial because they allow consumers to hold companies accountable for their actions. Sony PlayStation has not yet reacted to the allegation.

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