One of the world’s largest computer game companies faces a collective action worth up to £5bn in England and Wales for allegedly ‘ripping people off’ with overpriced games and in-game purchases.

Sony is said to have abused its dominant position by imposing ‘unfair terms and conditions on PlayStation game developers and publishers’, including a 30% commission, which results in ‘excessive and unfair prices’ for consumers buying games or other content in the PlayStation Store.

Consumer champion Alex Neill is bringing the claim – valued at between £600m and £5bn – in the Competition Appeal Tribunal on behalf of almost nine million UK customers, who could each receive between £67 and £562 in damages excluding interest.

Playstation console

Sony is accused of abusing its dominant position in relation to PlayStation games and in-game content

Source: Alamy

Anyone who has made purchases through the PlayStation Store since August 2016 will be part of the proposed collective action unless they opt out of the claim.

Neill said: ‘The game is up for Sony PlayStation. 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.’

Her solicitor Natasha Pearman, a partner at Milberg, said: ‘Sony dominates the digital distribution of PlayStation games and in-game content [and] it has deployed an anti-competitive strategy which has resulted in excessive prices to customers that are out of all proportion to the costs of Sony providing its services.

‘This claim is only possible because of the opt-out collective action regime that was introduced by the Consumer Rights Act 2015, a regime which Alex fought to introduce. We are looking forward to working with Alex and making sure that the regime achieves its aims of protecting and compensating consumers.’

The claim is backed by Woodsford Litigation Funding, whose chief investment officer Charlie Morris said: ‘Woodsford is proud to be funding Alex Neill and we are determined to help her hold Sony to account for its anti-competitive behaviour. Litigation finance of the kind provided by Woodsford is fundamental to these actions. It levels the playing field, provides consumers with equality of arms and affords access to justice so that big businesses like Sony cannot take advantage of consumers in this manner without consequence.’

Sony did not immediately respond when contacted for comment. 

 

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