Playstation is Being Sued RM26 Billion For “Ripping People Off” & Abusing Market Power

By Karissa Lund  •  23 Aug 2022 in News

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These are crazy times in the increasingly-profitable video game industry. The “standard” price of video games is creeping higher and higher, pushing the limits of the RM100 price once considered to be too much.

Due to this, a consumer rights advocacy group based in the United Kingdom is suing Sony for RM26 billion for “ripping people off” on its online store. The group claims that Playstation is charging a 30% commission on digital games and in-game purchases on its store which is in breach of competition law.

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

According to IGN, the class action lawsuit led by Alex Neill seeks to distribute billions of dollars to players who have used the PlayStation UK store since August 2016.

“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.

“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 are 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,” Neill said in a statement.

Sony has yet to comment on the situation. For now, we’ll have to wait and see whether the courts in the UK will uphold that the PlayStation ecosystem is a monopoly, and whether that will have an impact on other walled gardens like app stores or Steam.