[GameSpot] - Sony Facing $5.8 Billion Lawsuit Over PlayStation Store Royalties

[343iBot]

Sony is facing legal action in the UK, with a new collective action suit claiming that the company has "ripped people off" by taking a 30% cut on all transactions made on the PlayStation Store.

Sony, just like Microsoft and Valve, has long taken this cut from purchases on its store, but consumer rights activist Alex Neill is claiming that this is a breach of consumer rights. Speaking to Sky News, Neill explained that Sony is abusing its market share to impose unfair conditions on games publishers, which in turn is raising prices for consumers.

"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," said Neill in a statement to Sky News. "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 claim was filed with the Competition Appeal Tribunal last week, with the suit representing anyone who had made a purchase on the PlayStation store since August 2016. That potentially includes 9 million PlayStation users in the collective action, with anything between $78 and $661 in compensation should the suit be successful in court.

Consumers will also not be liable for any legal fees should the case win. The action is being funded by Woodsford, a team of litigation experts that specializes in large commercial claims. The suit is also only possible in the UK thanks to new legislation that Neill helped introduce in 2015, which further strengthened consumer rights.

Sony has yet to comment on the suit but has some experience with similar claims. Earlier this year, Sony convinced a US court to throw out a claim that it was anti-competitive through its control of the PlayStation Store, with the judge finding that the evidence did not fully support the claim.

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