Latest news with #StichtingMassaschade&Consument
Arabian Post
2 hours ago
- Business
- Arabian Post
Sony Sued Over ‘Sony Tax' in Digital‑Only PlayStation Market
Dutch courts are set to rule on a class‑action lawsuit brought by Stichting Massaschade & Consument, which claims Sony has leveraged its dominance in the PlayStation ecosystem to impose inflated digital pricing, burdening an estimated 1.7 million gamers and costing consumers at least €435 million since 2013. At the heart of the case is the allegation that digital editions of games—often bought via diskless PS5 consoles—are around 47 per cent more expensive than their physical counterparts, despite significantly lower distribution costs. The Massaschade & Consument foundation launched its 'Fair PlayStation' campaign in February, rapidly attracting over 20,000 petition signatures seeking compensation for affected gamers. The petition argues that Sony's closed‑shop approach—barring third‑party game sellers and app stores from its platform—amounts to monopolistic practice, enabling price manipulation without competitive pressure. Foundation chair Lucia Melcherts highlights the shift towards digital consoles: 'Many people notice that they are increasingly being pushed towards 'digital‑only' consoles … consumers pay an average of 47 % more for these digital versions than for exactly the same game on a physical disc'. The legal filing contends that Sony reaps more than double the profit on digital sales compared to retail copies, even though digital distribution should cost less. ADVERTISEMENT Data from the Netherlands indicates that more than 80 per cent of console gamers own a PlayStation, illustrating the company's extensive control over the local market. This dominance allows Sony to 'make decisions without having to worry much about what competitors, developers or consumers are doing,' says Melcherts. Industry analysis points out that while Sony exclusively controls pricing on its digital storefront, physical game retailers—such as bricks‑and‑mortar or online shops—compete on price, often discounting titles to capture market share. By contrast, diskless PS5 owners are locked into Sony's pricing model, facing limited or no alternatives. Legal observers note the case will challenge whether Dutch courts will accept jurisdiction and allow the suit to proceed to its substance. The first hearing is expected later this year, where the court will assess the foundation's standing and the validity of its antitrust claims. If the suit is admitted and successful, it could pave the way for consumer restitution and potentially force Sony to open its digital marketplace—though the foundation itself accepts that this level of structural change may be unlikely. Gamers in the Netherlands have expressed growing frustration at Pay‑to‑own models for digital content that offer no resale value or price competition. Reddit users have decried the practice, stating: 'Sony is abusing their market share to increase digital prices by nearly 50 %'. The lawsuit comes amid broader regulatory scrutiny of platform operators in areas such as app‑store commissions and loot‑box gambling classifications. It marks the latest legal effort to hold tech companies accountable for pricing power over essential digital ecosystems.
Time of India
15 hours ago
- Business
- Time of India
Why is PlayStation facing lawsuits from thousands of Gamers?
(Image via Getty Images) Sony 's PlayStation is confronting a massive legal battle all across Europe. The class action lawsuit has accused Sony of some unfair practices that center on the dominance of digital game stores and the impact they have on consumer wallets. The core grievance here revolves around a perceived PlayStation's market control, leading to unexpected results that impact the gamers at last. Why is PlayStation being targeted by Gamers? The lawsuit, led by the Stichting Massaschade & Consument consumer group, targets Sony and its exclusive control over the digital game sales on the PlayStation consoles. It's been claimed by gamers that they are being forced to buy all the digital titles directly from the PlayStation digital store. It eliminates any competitive pricing from any third-party retailers. Quite critically, it's been alleged via a suit that Sony's monopoly allows it to set artificially higher prices. Economic research even suggests that digital games cost the Dutch consumers approx. 47% higher than identical physical discs. Such a significant price gap persists despite digital distribution being cheaper for Sony, thereby eliminating expenses like logistic and physical production costs. PlayStation lawsuits bring Sony's market dominance under scrutiny Central to the lawsuit is Sony's overwhelming market position in the Netherlands. It is estimated to own 80% of the console market. It's asserted by consumer group that such dominance allows Sony to operate without any meaningful competition. They even claim that Sony exploits its position, completely blocking all other potential app stores from having access to PlayStation consoles. The lack of alternatives, together with a push towards only digital consoles like PS5 Digital Edition, locks consumers into Sony's ecosystem. Gamers cannot buy cheaper physical games from any other retailers. The group has further stated that Sony makes pricing decisions, including the recent increases, without considering developers, competitors, or even consumer backlash. They do not have any fear of losing their customers. Such control is seen as stifling the fair market dynamics there. Stichting Massaschade & Consument seek damage and change BIG PlayStation Store LAWSUIT - OVERPRICED PSN Store Games? The lawsuit is not just about past grievances, but it demands some significant restitution. As per Stichting Massaschade & Consument estimates, the Dutch gamers have, since 2013, overpaid approx. €435 million ($505 million) due to such alleged practices. They are now seeking compensation for such purported damages that were suffered by approx. 1.7 million Dutch PlayStation owners. Beyond compensation for gamers, plaintiffs even seek some fundamental change. They want the court to force Sony to open the PlayStation platform for competing digital game sellers. It will introduce real competition. It will potentially lower prices and increase the consumer choice for making digital purchases on PlayStation consoles. The first hearing of this lawsuit against Sony monopoly, is anticipated for late 2025. Game On Season 1 continues with Mirabai Chanu's inspiring story. Watch Episode 2 here.
