Sony May Have Shot Itself In the Foot
Sony finds itself involved in yet another potentially multi-billion pound case in the United Kingdom. This time, they are the defendants in a Class Action suit brought by Alex Neill on behalf of potentially 8.9 million people who are in or resided in the UK from April 1, 2019, to the beginning of this class action suit.
The recent judgment was basically a ruling on whether there was an actual class for the class action, and whether there is any potential merit to this proposed suit (did it have a chance in full court).
A Little Context
Before we dive into this case, we need to point out two things that Sony has done that make them unique in the video game industry. First, on April 1, 2019, Sony Interactive Entertainment (SIE, which is the branch of Sony in charge of PlayStation) announced that digital sales of games could only be conducted through their digital storefront, the PSN.
If you walked into a Best Buy in America or its equivalents around the world, you could buy either physical or digital versions of games for the Xbox or the Switch. This means that Microsoft and its Xbox or Windows store, are not the only place to buy digital games. If you own the Series S, this is important. You have options.
Sony may have made itself a monopoly. This was no April Fool’s joke either. So for the past four-plus years, they have had zero competition for the distribution of digital editions of all games for the PlayStation.
Second, Sony insisted that Nintendo was not part of the “gaming console market.” In their filing with the Brazilian Competition Market Authority (CADE), they argued that only Xbox and PlayStation are in the same market. The US Federal Trade Commission (FTC) would run with this definition even when it didn’t make much sense.
Stages of the PlayStation Class Action Law Suit
This current lawsuit, although not beholden to the FTC definition, alleges that Sony and Microsoft are the console gaming market, likewise excluding Nintendo, and because PlayStation has such a large share of that market in the United Kingdom (they’ve been the number one console sold in the UK since the PlayStations inception in 1994), they hold a monopoly. This alleged monopoly is what led to consumers paying higher prices than they would have paid with a competitor in the market. It is these damages that are being sought.
The initial stages of a lawsuit are often filed before full discovery (when the involved parties have to share relevant documents with each other) when information is limited. The one bringing the suit (applicant) explains their case and legal reasoning. The defendant then responds. In this case, Sony tried to have the case either thrown out or a Summary Judgment granted (which is not unexpected). A Summary Judgment is basically a judgment granted without any further information, hearings, or proceedings.
Sony’s request was denied, and the suit may now proceed to trial with full discovery. Sony was not left completely empty-handed, they did get a small, potential concession to the class status having a firm cutoff of the file date of this suit.
So What Does the Sony PlayStation Class Action Lawsuit Actually Mean?
So what does all this actually mean? While an important legal hurdle has been cleared, it doesn’t mean anything other than that this may now proceed to trial. At this time there is no penalty, or guilt associated with Sony’s practice and use of the PlayStation Network (PSN).
Further information will be gathered and a determination on when to continue with this process will be made sometime after 30 Days from November 21, 2023. After this period, we will see how much, if any of the potential five billion pound suit (about six billion two hundred forty-five million dollars) Sony will have to pay to its nearly nine million customers in the UK.
