PlayStation has Faced Massive Lawsuits over Alleged Overcharging by Customers

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In the UK, PlayStation faced a lawsuit in the amount of 5 billion pounds, which is comparable in price in US dollars. This lawsuit was filed by consumer protection campaigner Alex Neal, who claims that PlayStation’s terms imposed on developers and publishers who sell games on its platforms violate competition law.

As many gamers know, many platforms receive a share of all sales. This applies not only to Sony, but also to other platforms such as Steam and the App Store, which usually take up 30%. One of the leading platforms that takes up less than this is the Epic Games store, which takes up 12%. It is this reduction, according to Neal, that leads to overpricing for consumers.

According to Sky News, VGC and other British news sources, the lawsuit claims that this reduction is an anti-competitive strategy that costs consumers millions when they cannot afford it. Natasha Pirman, who is leading the case, also states that such a strategy leads to “inflated prices for customers that are incommensurable with Sony’s costs for providing its services.” This lawsuit, if it is considered, will lead to the fact that any UK resident who has bought games or DLC from the PlayStation Store since August 2016 will be entitled to compensation in the amount of up to 562 pounds plus interest (with each person’s net profit of 67 pounds). plus interest).

It is said that it will benefit approximately 9 million people in the UK if the lawsuit is won. However, this is not the first anti-competitive lawsuit against Sony or digital store owners, as these lawsuits are often dismissed, and it is unlikely to be the last. The 70/30 revenue distribution has been around for some time, and Epic welcomes the reduction of its share to 12%, and many critics of the 70/30 model generally consider it outdated. This is a controversial, albeit looped, revenue model, but Sony can easily argue that it is necessary to, so to speak, keep the lights on in its digital store.

However, apart from the fact that the funds are being sent back into the hands of consumers, it is unclear whether the lawsuit concerns legality or any solutions for the 70/30 model. In particular, it is unclear whether the claim is that Sony should not take a commission from third-party sales on its platform at all, or 30% is simply too much. It should be noted that, according to a recent survey, only about 6% of game developers consider the 70/30 model justified.

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