Sony sued for ‘disproportionate Sony tax’: abusing its market position to increase game prices?
Sony accused of abusing its market position in the digital sale of PlayStation games to increase prices.
Image by Getty/SOPA Images
The Dutch Mass Claims and Consumer Foundation has filed a class-action lawsuit against Sony for abusing its market position in the digital sale of PlayStation games to increase prices.
According to the foundation, Sony's prices for digital content in the PlayStation Store are excessive. As a result, millions of Dutch people have been paying too much for PlayStation games and in-game content for years. Research has shown that digital copies of video games are, on average, 47% more expensive than physical copies.
In addition, Sony holds a monopoly on digital sales. Unlike platforms like the Microsoft Store or Epic Games Store, PlayStation owners can purchase games and in-game items exclusively in Sony’s PlayStation Store.
This, along with Sony’s dominant position in the console market, leads to what the foundation calls a “Sony tax:” artificially high prices that make gamers pay more for digital games and in-game content than they would in a competitive market.
“Sony is behaving like a monopolist in more ways than one. Game developers often have to agree to the terms Sony imposes on them, including the price at which their games are put on display. This despite the fact that costs have actually dropped for Sony since it no longer has to spend money on physical outlets, printing costs, or transportation. PlayStation gamers, however, continue to pay top dollar, even for games that are several years old,” says Lucia Melcherts, Chairman of the Mass Claims & Consumer Foundation.
The foundation argues that Sony is violating both Dutch and European competition rules, which are meant to protect consumers from dominant and powerful companies. On behalf of more than three million Dutch PlayStation gamers, the foundation demands that Sony stop its unlawful actions. In addition, gamers need to be compensated for what they overpaid in “Sony tax.”
If the court approves the class-action lawsuit and grants the claims, the foundation expects that this will force Sony to open up the market for the sale of digital PlayStation content to other providers.
Dutch PlayStation users who have made purchases from the PlayStation Store can join the collective claim free of charge. The first court hearing is expected later this year.
The Dutch Mass Claims & Consumer Foundation isn’t the only plaintiff to pursue legal action against Sony. Similar legal proceedings are currently being fought in Portugal and the United Kingdom, where the Competition Appeal Court recently gave the green light to initiate a trial.