According to Alex Neill, the consumer champion who brought the case to the UK’s competition court, Sony is abusing its dominance in the UK market to impose unfair terms and conditions on the PlayStation Store, where it sells digital games, downloadable content and subscriptions. The company charges a flat 30% fee to developers who want to sell games on the store, which often results in digital content being priced higher than a physical copy of the same title – despite the associated costs of manufacturing and shipping hardware. Neill has filed the claim, which uses the UK’s right of collective redress for consumer damages, on behalf of anyone in the UK who bought digital games or add-on content from the store since 19 August 2016. He is seeking compensation of between £67 and £562 per individual member , which could take the total paid up to £5bn if successful. “The game is ready for the Sony PlayStation,” Neill said. “With this legal action I am standing up for the millions of people in the UK who were unwittingly overcharged. We believe Sony abused their position and ripped off their customers. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “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. Sony’s actions are costing millions of people who can’t afford it, especially when we’re in the middle of a cost-of-living crisis and consumer wallets are being squeezed like never before.” Natasha Pearman, who is leading the case for solicitors Milberg London, said: “Sony dominates the digital distribution of PlayStation games and in-game content. It implemented an anti-competitive strategy that resulted in excessive prices for customers that are disproportionate to Sony’s costs of providing its services. “This claim is only possible because of the collective action exemption regime introduced by the Consumer Rights Act 2015. a regime that Alex fought to introduce. We look forward to working with Alex and ensuring that the scheme achieves its objectives of protecting and redressing consumers.” The case is backed by Woodsford, an investment firm that provides funding for legal cases in exchange for a cut of the proceeds. Steven Friel, the company’s chief executive, said it was “committed to holding big business accountable when corporate wrongdoing harms consumers and other stakeholders.” Woodsford has also supported the British class action against train companies accused of overcharging and shipping agencies accused of inflating the cost of importing cars, Friel added. Sony did not respond to requests for comment.
