Sony sued in Netherlands over “Sony Tax” and its perceived monopoly on digital sales

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.