UK mega-trial on Sony 'profiteering' opens

A trial opened in London on Tuesday over a £2 billion ($2.7 billion) class action lawsuit that accuses Japanese entertainment giant Sony of breaching competition law by allegedly overcharging millions of UK PlayStation users.

The claimants argue that Sony has excluded competition and imposed excessive charges on digital games sold through its PlayStation Store for nearly a decade.

"Sony have abused that position by charging consumers too much money," consumer campaigner Alex Neill, who brought the action on behalf of an estimated 12.2 million users, told AFP.

The PlayStation Store is the official digital platform where gamers can buy Sony classics like "Gran Turismo" and "God of War", as well as blockbuster titles like "Call of Duty", "GTA" and "Assassin's Creed" from other studios.

"Sony has implemented a sustained strategy to exclude all actual and potential competition from the digital distribution markets," Robert Palmer, a lawyer representing the claimants, told the Competition Appeal Tribunal.

According to the claimants, the game "Assassin's Creed Shadows" is sold on the PlayStation Store for nearly £70, roughly double the price of the physical edition at UK retailer Currys.

They also argued that Sony charges an excessive 30 percent commission, while PC game distribution platforms — which face greater competition — typically charge lower fees.

"It is clear on the evidence that the profitability of the PlayStation system is far from excessive," Sony said in its legal submissions shared with AFP.

If you account for the total price of the console and the game, "its digital content is priced at similar levels to that on other platforms and... similar prices to discs", the company said.

Sony added that if the prices were not comparable, "consumers and publishers would simply go elsewhere".

Under UK law, all potentially affected persons are included in this type of class action by default, and may benefit from possible compensation, unless they voluntarily opt out.

"We're aware of other cases that are being pursued," including in Australia, the Netherlands and Portugal, said Natasha Pearman, a partner at Milberg London, one of the claimants' lawyers.

"So it's a global strategy, essentially, that's been adopted," she added.

Last year, Apple lost a lawsuit in London for abusing its dominant position and charging excessive commissions on its in-house App Store.

The US tech giant, which has said it intends to appeal the decision, could be liable to reimburse millions of users.

Sony was founded in 1946 as initially Tokyo Tsushin Kogyo K.K. by Masaru Ibuka and Akio Morita. In 1958, the company adopted the name Sony Corporation. Initially an electronics firm, it gained early recognition for products such as the TR-55 transistor radio and the CV-2000 home video tape recorder, contributing significantly to Japan's post-war economic recovery. After Ibuka's retirement in the 1970s, Morita served as chairman until 1994, overseeing Sony's rise as a global brand recognized for innovation in consumer electronics. Landmark products included the Trinitron color television, the Walkman portable audio player, and the co-development of the compact disc.

Expanding beyond electronics, Sony acquired CBS Records in 1988 and Columbia Pictures Entertainment in 1989, while also entering the home video game console market with the launch of the PlayStation in 1994. In Japan, the company further diversified by establishing a financial services division in 2001, that would be turned into a separate company in September 2025, with the group maintaining 20% of the shares. In 2021, the company was renamed Sony Group Corporation as it transitioned into a holding company structure, with its electronics business continuing under the name Sony Corporation.

As of 2020, Sony holds a 55% share of the global image sensor market, making it the largest image sensor manufacturer, the second largest camera manufacturer, a semiconductor sales leader, and the world's third-largest television manufacturer by sales.

Sony is publicly traded on the Tokyo Stock Exchange and also maintains American depositary receipts on the New York Stock Exchange. As of 2021, it ranked 88th on the Fortune Global 500 and 57th on the 2023 Forbes Global 2000 list.