Sony sued for £5bn for “ripping people off” on PlayStation Store

Sony is being sued for £5bn, accused of “ripping people off” on its online store.

The legal claim is led by ex-managing director of Which UK Alex Neill and was filed with the Competition Appeal Tribunal last week.

It claims by charging a 30 percent commission on digital games and in-game purchases on the PlayStation Store, Sony is in breach of competition law.

Sony is accused of abusing market power by imposing unfair terms and conditions on game developers and publishers, forcing prices up for consumers, reports Sky News.

The legal action states consumers have been overcharged by as much as £5bn. Anyone in the UK who has purchased content on the store since 19th August 2016 is included in the claim and is potentially entitled to compensation – said to be nine million people.

This would put estimated damages per claimant at between £67 and £562, excluding interest.

The 30 percent cut from Sony is an industry standard, in-line with other games companies like Microsoft, Steam, and the App Store. It’s unclear why exactly Sony is the sole target of this claim.

“The game is up for Sony PlayStation,” said Alex Neill.

“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.

“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 is 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.”

The website PlayStation You Owe Us has also been set up to campaign against Sony.

Eurogamer has contacted Sony for comment.

A similar case in the US was recently dismissed, where Sony was accused of anti-competitive acts by controlling its PlayStation Store, as reported by Bloomberg.