Sony could face £5bn in legal claims over PlayStation game charges

Sony has been overcharging PlayStation gamers for six years, a new legal claim alleges, and could be forced to pay almost £5bn in damages if the claim succeeds.

According to Alex Neill, the consumer champion who has filed the case with the UK's competition appeal tribunal, Sony has been abusing its dominance in the British market to impose unfair terms and conditions on the PlayStation Store, where it sells digital games, downloadable content and subscriptions.

The company charges a flat 30% fee to developers who want to sell games on the store, which often results in the prices of digital content being higher than a physical copy of the same title - despite the associated costs of making and shipping hardware.

Neill has filed the claim, which uses a British right to collective redress for consumer harms, on behalf of anyone in the UK who purchased digital games or add-on content on the store since 19 August 2016. It seeks damages of between £67 and £562 per individual member, which could take the total sum paid out up to £5bn if successful.

"The game is up for Sony PlayStation," said Neill. "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."

Natasha Pearman, who is leading the case for lawyers Milberg London, said: "Sony dominates the digital distribution of PlayStation games and in-game content. It has deployed an anti-competitive strategy which has resulted in excessive prices to customers that are out of all proportion to the costs of Sony providing its services.

"This claim is only possible because of the opt-out collective action regime that was introduced by the Consumer Rights Act 2015; a regime which Alex fought to introduce. We are looking forward to working with Alex and making sure that the regime achieves its aims of protecting and compensating consumers."

The case is being backed by Woodsford, an investment business that provides funding for legal cases in exchange for a cut of the proceeds. Steven Friel, the company's chief executive, said it "is dedicated to holding big business to account when corporate wrongdoing causes loss to consumers and other stakeholders".

Woodsford has also backed British class action against train companies accused of overcharging, and shipping agencies accused of inflating the cost of importing cars, Friel added.

Sony did not respond to requests for comment.