Sony Faces $7.9B UK Mass Lawsuit Over PlayStation Store Pricing: Report

Zinger Key Points
  • Sony reportedly faces a mass lawsuit worth up to $7.9 billion in the UK.
  • Claims allege Sony's monopoly led to unfair prices for customers.

Electronics and entertainment giant Sony Group Corp SONY is reportedly facing a major legal challenge in the United Kingdom with a London tribunal ruling that Sony must confront a mass lawsuit, potentially amounting to 6.3 billion pounds (about $7.9 billion). The lawsuit accuses the corporation of exploiting its market dominance, leading to inflated prices for PlayStation users.

The legal action against Sony Interactive Entertainment (SIE) is brought on behalf of nearly 9 million U.K. residents who have purchased digital games or add-on content through the PlayStation Store, reported Reuters.

The report further noted that the lawsuit, initiated by consumer advocate Alex Neill, claims that Sony mandated that all digital games and additional content be exclusively bought and sold through the PlayStation Store, which imposes a 30% commission on developers and publishers, resulting in higher consumer prices.

Lawyers representing Neill have presented an estimated aggregate damage of up to 6.3 billion pounds, including interest.

Sony's legal representatives countered the accusations, labeling the lawsuit fundamentally flawed and requesting its dismissal, as per the report.

Despite Sony's arguments, the Competition Appeal Tribunal has allowed the case to move forward and specified that individuals who made purchases from the PlayStation Store after the lawsuit's filing in 2022 should be excluded from the claimant group.

Price Action: SONY shares closed lower by 0.86% at $86.79 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesNewsMarketsMediaGeneralAI GeneratedBriefsEurasia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!