Alex Neil, UK consumer rights advocate, has taken legal action against PlayStation formally seeking compensation for nearly nine million gamers. The number of the demand, by the way, removes the hiccups: 5 billion pounds. At the current price, it is almost 6,000 million euros and, for reference, it is considerably more than what Sony paid for the purchase of Bungie. What has happened?
As reported by international media such as the BBC itself or Sky News, Neill states that PlayStation violated competition law, abused its market power to impose unfair terms and conditions game developers and publishers and even forced them to raise prices for consumers. Namely, the players themselves.
In fact, the two referred Anglo-Saxon media use the same expression used by Neill: “PlayStation ripped people off.” How? According to the lawsuit filed, both by charging a 30% commission on each digital game through the PlayStation Store and through in-game purchases.
The consumer rights advocate claims that PlayStation “overcharged” to their own customers without them being aware of it when they made purchases of digital games, estimating the total in £5 billion in the last six years.
One lawsuit, nine million possible compensation
Although the case in question concerns PlayStation, the other reality is that commissions on digital platforms for all types of content are frequent and quite recurrent. Especially on mobile devices. Epic Games started their own crusade against Apple and Google for very similar reasons.
Another thing is Neill’s accusations against PlayStation about how the second forced developers and publishers to raise prices for the consumers. Something that, in statements by the consumer rights defender herself to BBC News, is well-founded and they are very aware of it.
We think we have a really strong case, otherwise we wouldn’t be doing this. Going up against a company like Sony is a very serious matter.
alex neil is being advised on the matter by the law firm Milberg London LLP. and the last word will have the Court of Appeal of the Competition, logically. But that does not mean that it is not a dizzying figure: beyond the amount of the demand, it is speculated that we are talking about almost nine million players affected by PlayStation measurements.
We believe that Sony abused its position and defrauded its customers. Sony’s stock is 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’s pocketbook is being squeezed like never before.
And that’s not all, as the process has been proposed, and as reported by the BBC, PlayStation users will automatically have the opportunity to join the lawsuit if:
- Have owned a PlayStation console since August 19, 2016
- Have been residents of the UK
- Have bought PlayStation digital games
- Or have made in-game purchases through the PlayStation Store
Taking into account the number of PS4 distributed worldwide and the numbers that only handle games like Fortnite, for example, the chances of meeting the profile are enormous.
The damages in the claim have been estimated to range between 67 pounds and 562 pounds on average per person . However, Neill herself is very aware that this action is only the beginning of a process that may take several years to resolve. In case it is resolved, of course.
That said, it is not ruled out that there is a direct agreement by and between Sony and the PlayStation brand to cushion the blow. Something that Alex Neill already has.
With this legal action, I am standing up for the millions of people in the UK who have been unknowingly overcharged
We would expect, given the number of consumers affected and the amount we believe they have been overcharged, that Sony would want to take this forward and settle. But we have no idea what they plan to do
In any case, Alex Neill is clear that your demand will not fall on deaf ears by stating that “The game is over for Sony PlayStation”
A hit in the side for PlayStation at a very sensitive time
To what extent is this millionaire claim justified? Natasha Pearlmanwho works with Neill on the case, is very aware of the two pillars that support the cause:
Sony, which dominates the digital distribution of PlayStation games and game content; has implemented an anti-competitive strategy that has resulted in excessive prices for customers that are out of all proportion to Sony’s costs for providing its services.
In this regard, it should be noted that Sony itself faced a class action lawsuit for restricting the sale of digital codes for the PlayStation Store not too long ago.
On the other hand we have UK legal framework. And, according to Pearlman, Alex Neill herself knows very well the fringes and scopes of the Consumer Rights Act.
This claim is only possible due to the exclusionary class action regime that was introduced by the Consumer Rights Act of 2015; a regimen Alex fought to introduce. We look forward to working with Alex and ensuring that the regime achieves its goals of protecting and compensating consumers.
From here three possible exits to PlayStation are opened.
- The first is counter the lawsuit and the accusations before the Court of Appeal of Competition, which will result in the demand not reaching any port. As the action is financed by Woodsford, a specialized team of experts in litigation and arbitration, the costs of the process would be absorbed by the plaintiff.
- The second is that the Court of Appeal of Competition take into consideration the demand and proceed with the amounts stipulated or those you deem appropriate. In the event that these are the ones requested by Neill, it would be a lethal blow for PlayStation and a rethinking of its international digital game sales model to prevent this same event from taking place in other countries.
- The third, most likely, is that resort to arbitration or an agreement between the interested parties. This agreement can translate into different direct or indirect solutions that are much more beneficial for PlayStation than the direct payment of the amounts required by the consumer rights defender in the United Kingdom.
And, we will not deny it, with 5 billion pounds at stakeSony and PlayStation will most likely try the third way.