Electronics and entertainment giant Sony Group Corp SONY is reportedly facing a major legal challenge in the United Kingdom with a London tribunal ruling that Sony must confront a mass lawsuit, potentially amounting to 6.3 billion pounds (about $7.9 billion). The lawsuit accuses the corporation of exploiting its market dominance, leading to inflated prices for PlayStation users.
The legal action against Sony Interactive Entertainment (SIE) is brought on behalf of nearly 9 million U.K. residents who have purchased digital games or add-on content through the PlayStation Store, reported Reuters.
The report further noted that the lawsuit, initiated by consumer advocate Alex Neill, claims that Sony mandated that all digital games and additional content be exclusively bought and sold through the PlayStation Store, which imposes a 30% commission on developers and publishers, resulting in higher consumer prices.
Lawyers representing Neill have presented an estimated aggregate damage of up to 6.3 billion pounds, including interest.
Sony's legal representatives countered the accusations, labeling the lawsuit fundamentally flawed and requesting its dismissal, as per the report.
Despite Sony's arguments, the Competition Appeal Tribunal has allowed the case to move forward and specified that individuals who made purchases from the PlayStation Store after the lawsuit's filing in 2022 should be excluded from the claimant group.
Price Action: SONY shares closed lower by 0.86% at $86.79 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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