The Dutch foundation Massaschade & Consument has initiated a collective action against Sony, citing the “excessively high” prices associated with PlayStation games.
PlayStation Store Pricing at the Centre of the Claim
The lawsuit pertains to the distribution of games designed for the Sony PlayStation, a gaming console produced and marketed by the Sony group. It also addresses the systems and frameworks established by Sony surrounding the PlayStation, including the online platform known as the “PlayStation Store,” where digital versions of games are sold.
In the past, Sony’s video games were primarily sold as physical discs in retail outlets; however, the trend has shifted significantly towards digital purchases, predominantly through Sony’s PlayStation Store. The foundation asserts that this dominance in digital sales, coupled with PlayStation’s substantial share of the console market, results in what is referred to as the “Sony tax.” This phenomenon leads to inflated prices, causing gamers to pay significantly more—by tens of percentage points—for digital games and in-game purchases compared to a competitive market scenario.
Lucia Melcherts, chairperson of the foundation, notes that Sony is the sole retailer for digital PlayStation content, effectively eliminating any price competition. Furthermore, Sony’s monopolistic behaviour extends to its dealings with game developers, who often find themselves compelled to accept the terms set by Sony, including the pricing of their games. Despite a reduction in Sony’s operational costs—due to the absence of physical retail locations, printing expenses, and transportation—PlayStation users continue to face high prices, even for titles that have been available for several years.
Alleged Breach of Competition Law
The foundation alleges that Sony is violating European and Dutch competition law. Massaschade & Consument is seeking an injunction against Sony’s unlawful practices and compensation for affected PlayStation users.
Who Can Join the Sony Collective Claim
The organization has called upon Dutch residents who own a PlayStation 4 or 5 to participate in the collective claim. Eligibility requires individuals to be at least 18 years old, possess a Sony PlayStation Network account, and have made a purchase in the PlayStation Store between 29 November 2013, and the present.
The foundation has refrained from estimating the potential compensation amount. As is common in mass claims, a portion of any awarded compensation will be allocated to entities that finance such legal actions. Omni Bridgeway and Augusta Ventures are providing funding for this case.
Similar Claim Against Sony in the United Kingdom
In the United Kingdom, Alex Neill initiated a comparable lawsuit against Sony PlayStation in August 2022 with the legal support of Milberg London and financial backing from Woodsford. On 21 November 2023, the Competition Appeal Tribunal (CAT) issued a ruling that allowed Ms. Neill to proceed to trial with her 5 billion pound claim against Sony; the CAT officially certified the legal action representing 8.9 million PlayStation customers in the UK. This decision represented a notable initial victory for the claimants, as Sony failed to convince the CAT to dismiss the case based on the substantive issues and the funding arrangements.
Related cases: read our analysis of the Booking.com consumer claim and the App Stores Claims case against Google, two other Dutch collective actions about platform pricing, competition law and consumer harm under the Dutch WAMCA collective action regime.
About the author: Dr Kees Jan Kuilwijk is an attorney at Hagens Berman Sobol Shapiro LLP with more than thirty years of experience in competition law and collective litigation. He holds a PhD, awarded cum laude, from the European University Institute in Florence and is the author of Class Action Litigation in the Netherlands, a complete guide to Dutch collective redress under the WAMCA.
