£5bn competition claim against Sony PlayStation proceeds to trial
A £5 billion claim against Sony PlayStation has been permitted to proceed by the Competition Appeal Tribunal (CAT).
The claim, brought by consumer rights expert Alex Neill on behalf of 8.9 million PlayStation customers, was first filed in the CAT in August 2022 and is an opt-out group legal action.
The claim sees Sony accused of abusing its market dominant position to impose unfair terms and conditions on PlayStation game developers and publishers, which results in excessive and unfair prices for consumers every time they buy digital games or in-game content from the PlayStation Store.
Alex Neill, the class representative for the claim, said: “This is the first step in ensuring consumers get back what they’re owed as a result of Sony breaking the law. Playstation gamers’ loyalty has been taken advantage of by Sony who have been charging them excessive prices for years.
“It is significant that the competition court has recognised Sony must explain its actions by ordering them to trial. With this action we are seeking to put a stop to this unlawful conduct and ensure customers are compensated.”
This is the first consumer claim of its kind to achieve certification for its funding arrangements in light of the recent Supreme Court ruling in the PACCAR case. The ruling has made waves in the litigation funding industry as it means that litigation funding agreements with a percentage-based fee cannot be used to fund opt-out collective proceedings that come before the CAT.
Natasha Pearman, the partner leading the litigation and head of competition litigation at Milberg London LLP, said: “We are delighted to have achieved certification for our claim against Sony. Companies who break the law must be held to account and we are determined to ensure this happens and consumers get access to justice. We hope that the certification of our claim provides some clarity as to acceptable litigation funding agreements in the post-PACCAR environment for opt-out claims.
“Litigation funding is integral to the collective action regime. When a company as large as Sony breaks the rules consumers often have no idea it is even happening, let alone have the resources to take them on – litigation funding helps to level the playing field. That is why group legal claims like ours are so important, they provide a route to accessing justice that simply doesn’t exist otherwise.”