Not a game: class action lawsuit against Sony

Photo: Depositphotos.com

The Dutch consumer non-profit organization Stichting Massaschade & Consument said Wednesday it is filing a class action lawsuit against Sony on behalf of some three million Dutch PlayStation users who they claim have been overpaying for the Japanese company’s games and in-game content for years.

“Sony charges excessive prices for digital games in its PlayStation Store by abusing its dominant position in the console market,” says the foundation.

They’ve been able to do this, says Stichting Massaschade & Consument, because the move from purchasing physical game discs in-store to today’s mostly digital purchases—which can only be made through Sony’s PlayStation Store—has led to what amounts to a “Sony tax”, wherein consumers pay up to 47% more for digital versions despite Sony doubling its profits since largely abandoning hard copies.

“For digital PlayStation content, Sony is the only remaining retailer, eliminating any form of price competition,” says Lucia Melcherts, chair of Stichting Massaschade & Consument. “Sony leverages its market power in various ways. Game developers frequently have little choice but to comply with Sony’s terms, including the price at which their games are listed in Sony’s PlayStation Store. Meanwhile, Sony’s operating costs have decreased—there are no physical stores, printing, or transportation expenses—yet PlayStation players are still charged full price, even for games that are years old.”

This monopoly on digital sales, combined with PlayStation’s strong position in the console market, has left gamers paying “artificially inflated” prices that the organisation says are much higher than what they would have paid in a competitive market.

Different from the competition

The foundation also points out the differences between the PlayStation Store and other game apps like the Microsoft Store and the Epic Games Store. “They are not exclusively tied to a device that controls the majority of the market, and must actively compete for users,” Melcherts says.

“Sony, however, is in a unique position where it can make decisions with little regard for competitors, developers, or consumers. It’s like owning a Sony TV that only lets you watch movies and series bought directly from Sony.”

Sony has the right to make money, adds the organisation, but consumers also have a right to fair pricing. In challenging what it says is Sony’s violation of both Dutch and European competition laws, the company is seeking an end to Sony’s “alleged unlawful practices” and compensation to players.

While the first court hearing is not expected to take place until later this year, the organisation says that if it eventually wins, it expects Sony will be forced to open the digital PlayStation content distribution market to other providers.

Sony has faced similar lawsuits in Britain and Portugal.

People in the Netherlands who have purchased items via the PlayStation store can register on the organisation’s website to “claim back their Sony tax.”

Stichting Massaschade & Consument has already taken against Airbnb, ABN AMRO, Google and TikTok. The Dutch Court of Appeals is expected to rule in the Airbnb case next month, which the organisation claims is charging double service fees.

 

 

 

 

 

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