LONDON:

Japanese entertainment giant Sony will face a £2 billion ($2.7 billion) class action lawsuit starting Tuesday in London, accused of allegedly breaching competition law by overcharging millions of UK PlayStation users.

The claimants’ website accuses Sony of “exploiting its UK customers” for nearly a decade by charging them “too much for PlayStation digital games and in-game content”.

“This case seeks to bring that conduct to an end and to secure compensation for those affected,” 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 a near monopoly on the sale of digital games” for its console, allowing it to dictate prices and charge a 30 percent sales commission to video game publishers, the claimants allege.

According to the claimants, PC game distribution platforms — which face greater competition — charge a lower commission of around 12 to 20 percent.

“Games are now designed to incentivise players to spend as much money as possible (including children),” the claimants’ website alleges, including for players to “progress, unlock more features, or customise their experience with new characters or weapons”.

Sony’s prices “are out of all proportion to the costs of Sony providing these services to its customers”, they said.

The trial is due to be heard at the Competition Appeal Tribunal in London, and is expected to last around 10 weeks.

The lawsuit launched in 2022 is seeking £1.97 billion in damages, to be shared by anyone who purchased digital games or add-on content via the PlayStation store in the decade leading to February 2026, with some limited exceptions.

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.

Sony did not immediately respond to AFP’s request for comment, but in its defence to the claim argued that its distribution model is justified.

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.

Although Sony is not part of a traditional keiretsu, it has historical ties to the Sumitomo Mitsui Financial Group, dating back to the 1950s when it relied exclusively on Mitsui Bank for financing.