Sony Fights $2.7 Billion London Lawsuit Alleging PlayStation Store Monopoly

The case, which is being heard at London’s Competition Appeal Tribunal (CAT), is being brought on behalf of roughly 12 million consumers in the United Kingdom. It is one of several major technology-related competition cases currently making their way through British courts, according to a statement about the proceedings.

The claim argues that Sony abused what plaintiffs describe as its strong market position by requiring that digital games and downloadable add-ons for PlayStation consoles be purchased exclusively through the PlayStation Store. According to Reuters, this policy limited competition and resulted in digital titles being priced higher than physical copies of the same games.

Sony disputes those allegations, maintaining that its platform structure benefits consumers and reflects significant long-term investment. The company says it has “invested years and billions” developing an integrated gaming ecosystem that supports developers and players alike. According to a statement from Sony’s legal team, the console maker operates in a competitive environment that includes rival platforms such as Nintendo and Microsoft’s Xbox, which also rely on centralized digital storefronts.

The lawsuit is being led by consumer advocate Alex Neill, who said in a statement that “gamers have paid too much and they should get some money back.” The value of the claim was previously estimated at up to 5 billion pounds but has since been revised down to about 1.97 billion pounds, according to Reuters.

Related: Sony Fights £2 Billion London Lawsuit Over PlayStation Store Prices

During early arguments before the tribunal, Robert Palmer, a lawyer representing the claimants, argued that Sony controls pricing for digital content sold on its platform. “Sony can and does set the retail prices … without facing any retail competition for digital content. It allows it to obtain monopoly profits from digital distribution,” Palmer told the tribunal.

Sony’s legal representatives counter that the lawsuit effectively argues for third parties to operate their own stores on the PlayStation platform while benefiting from Sony’s investments. According to a statement from the company’s lawyers, allowing outside storefronts would enable competitors to “free-ride” on the infrastructure Sony built for its gaming ecosystem.

The case comes as Sony continues to expand its PlayStation business. The company reported selling around 8 million PlayStation 5 consoles between October and December, according to a statement about its recent sales performance.

The lawsuit is also part of a broader wave of legal challenges targeting large technology platforms and their digital marketplaces. According to a statement about recent competition rulings, the Competition Appeal Tribunal last year ruled against Apple in a case involving its App Store, a decision the company is currently appealing.

Another major competition case involving Google is expected to go to trial in October. Fortnite developer Epic Games had initially been involved in that litigation but withdrew its claim earlier this week after Google announced significant changes to the policies governing its Play Store, according to a statement on the matter.

The tribunal proceedings against Sony are expected to examine whether its PlayStation Store practices unfairly restricted competition in the digital games market and whether consumers were harmed by the pricing structure.

Source: Reuters