[Eurogamer] Sony sued in Netherlands over "Sony Tax" and its perceived monopoly on digital sales

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Topher

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On behalf of 1.7m Dutch PlayStation users.

Sony is being sued in a Dutch class action lawsuit over artificially inflated prices on the PlayStation Store.

The lawsuit has been filed by Dutch non-profit organisation Stichting Massaschade & Consument on behalf of 1.7 million Dutch PlayStation users.

The organisation has accused Sony of "abusing its dominant position in the console market for at least a decade", according to a press release shared with Eurogamer. Due to the increased prevalence of digital sales and digital-only consoles, the organisation claims Sony has a monopoly over digital sales - what it has dubbed a "Sony Tax".

The lawsuit is part of the organisation's "Fair PlayStation" campaign, which it launched in February and attracted over 20,000 participants in its first week.

"Many people have noticed they're increasingly being pushed towards 'digital-only' consoles since the arrival of the latest PS5 generation," said Lucia Melcherts, chair of Stichting Massaschade & Consument.

"These consoles work exclusively with digital games rather than physical discs. Yet economic research shows that consumers pay on average 47 percent more for a digital version of a game compared to an identical physical copy - even though Sony's distribution costs are significantly lower."

In April this year, Sony raised the price of its PS5 console once again in multiple countries, including the UK and across Europe. Now, the PS5 Digital Edition costs £40 or €50 more, which Sony blamed on "the backdrop of a challenging economic environment, including high inflation and fluctuating exchange rates".

"The fact that Sony dares to raise prices by double digits without offering anything meaningful in return speaks volumes," said Melcherts. "Sony is the sole provider of digital content on the world's most popular gaming console. With more than 80 percent of Dutch console owners using a PlayStation, Sony is free to make decisions with little regard for competitors, developers, or consumers."

In the summons sent to Sony by Stichting Massaschade & Consument, there are two core accusations: the exclusion of competition, and the exploitation of consumers and game developers. The organisation claims PlayStation players are entirely dependent on Sony and its prices due to its closed ecosystem, while developers have limited commercial freedom with Sony setting prices.

Due to this "imbalance", Stichting Massaschade & Consument claims consumers are paying a premium - resulting in estimated damages in the Netherlands of up to €435m.

A first hearing will take place later this year.

The lawsuit follows a legal claim made in the UK in 2022 by ex-managing director of Which UK Alex Neill, filed with the Competition Appeal Tribunal. It claimed Sony was in breach of competition law due to a 30 percent commission on digital games and in-game purchases.

The lawsuit was then given the go ahead in 2023, and earlier this year was given the green light to proceed to trial.

Others in the industry have also received lawsuits over perceived monopolies.

Fortnite recently returned to iOS devices in the US and Europe following a lengthy battle between Epic and Apple over the latter's restrictions on purchasing methods. Meanwhile, last year Microsoft settled a lawsuit from players attempting to block its acquisition of Activision Blizzard due to a perceived monopoly over the industry.



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Crazy thing. It like Xbox sitting there self up to not have to worry bout this. If the next Xbox is able to have steam, epic and Xbox store. They have nothing to worry about. After what's happening to iOS iPhone in Europe. I wouldn't be surprised if in the next 10 years. Console and phones be able to have any store up on them
 
Is this new? I thought they were already being sued for this. Then again its hard to keep up with the all the lawsuits going around.
 
It's really about time this happens - 30% tax for every sold digital product is absolutely not okay. I believe Microsoft by now is only taking 12%, in addition, the fee for having a developer account has been waived.
 
One of the reasons I don't use the PS store (except for the occasional DLC) is due to the high prices. There are frequent sales, of course, but it's always bothered me that digital is more expensive than physical when it shouldn't be. And Sony is not the only one guilty of this.

What I would really like to see is a lawsuit about their woefully inadequate refund policy. That's another reason I don't use the store.
 
Is this new? I thought they were already being sued for this. Then again its hard to keep up with the all the lawsuits going around.

That was my initial thought, but looks like this is a different lawsuit. Yeah....it's hard to keep up.
 
One of the reasons I don't use the PS store (except for the occasional DLC) is due to the high prices. There are frequent sales, of course, but it's always bothered me that digital is more expensive than physical when it shouldn't be. And Sony is not the only one guilty of this.

What I would really like to see is a lawsuit about their woefully inadequate refund policy. That's another reason I don't use the store.
With you on this one. It's why I usually buy physical when it comes to PS5. I picked up Death Stranding 2 for £60 rather than £70. I can also let friends and family borrow it or just sell it on to get some money back when I'm finished with it.

Digital doesn't have a physical box, there are (I'm assuming) no distribution or shipping costs because the code is just downloaded to the console and yet it costs significantly more than physical. It's fucking crazy that digital prices aren't cheaper.
 
With you on this one. It's why I usually buy physical when it comes to PS5. I picked up Death Stranding 2 for £60 rather than £70. I can also let friends and family borrow it or just sell it on to get some money back when I'm finished with it.

Digital doesn't have a physical box, there are (I'm assuming) no distribution or shipping costs because the code is just downloaded to the console and yet it costs significantly more than physical. It's fucking crazy that digital prices aren't cheaper.

The funny part is back in the day when digital was first becoming more available - that was one of the arguments made in favour of it. It would be cheaper for everybody and save money across the board. Instead it turns out that when you give corporations carte-blanche control, they're very likely to abuse that power. I think we can all guess who made the loudest arguments in favour of digital too lol.
 
what? so they sue because customers buy and choose the more expensive digital edition of games that are avaialable physical too? Just buy physical if you don't like the price of digital?!?
 
Really the only thing that can be done about this is playstation being forced to offer digital codes for games. And they only set prices for their products and games. Most of the store is 3rd party.....
 
Same one. We have a thread for it.
Eurogamer just slow

Good grief. This was news in February. Sorry all. I'll report and have it closed.


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