A £2 billion class action lawsuit spearheaded by consumer champion Alex Neill claims that millions of PlayStation players in the UK were charged "excessive and unfair" fees for games.
If successful, millions of console owners could enjoy a £162 windfall from Sony — that's an estimate of how much players were allegedly overcharged, plus 8% interest.
The antitrust claim, originally filed in August 2022 but only given the go-ahead with a judgment from the Competition Appeal Tribunal in late 2023, will be heard by the specialist judicial body next week.
Class action lawsuits are commonplace in the United States, but are much rarer in the UK. These are lawsuits brought on behalf of a large number of people who have all suffered a similar loss. If successful, the damages paid by Sony will be shared between the total number of plaintiffs – roughly 12.2 million PlayStation owners in the UK.
Sony's PlayStation 5 console was originally released in 2020 | SONY PRESS OFFICE The high-profile case claims Sony unfairly profited from the shift to digital, which has been driven by changing consumer preferences and faster internet connections. The most affordable PlayStation 5 console ships without an optical drive, leaving owners unable to buy discs from high street retailers, second-hand marketplaces, or even borrow games from friends and family. An optional disc drive can be added for £69.99.
PlayStation Store is the only digital marketplace available on Sony consoles. Robert Palmer KC, representing the claimants, said in court documents that Sony’s “closed ecosystem” rendered digital users an “entirely captive class”. The lawsuit argues that Sony eliminates competition by prohibiting any rival storefronts and uses its market power to charge developers and publishers a 30% commission, which is passed on to consumers.
PlayStation games were originally supplied on discs when the console launched in the UK in 1995, but most are now downloaded for the latest PS5 model. Buying a digital copy means players can download and start playing a new game almost instantly.
The ability to play discs costs an extra £69.99 if you've bought the PlayStation 5 Digital Edition, a testament to changing consumer tastes when it comes to purchasing the playing video games
|SONY
It also removes the need to switch discs each time players want to try a different title. The latest generation, PlayStation 5, has sold more than 90 million units since 2020, becoming one of the top 10 bestselling consoles.
In its defence, Sony has told the Competition Appeal Tribunal that its distribution model is justified, partly because permitting third-party stores for downloads would introduce security and privacy risks.
The Japanese gaming firm has also said it invests heavily in hardware, selling consoles at a relatively low margin to build a user base, and that the commission on digital sales is part of a cross-subsidisation strategy to cover these costs.
To be counted in Alex Neill's mass lawsuit, you don't need to do anything. If you're eligible, you will be automatically included in the claim and receive the appropriate compensation.
You'll only need to take action if you want to be excluded from the lawsuit. To remove yourself from the claim, you can submit a request via the PlayStation You Owe Us campaign website.
To be eligible, you'll need to meet the following criteria...
- Owned a PlayStation 4 between August 19, 2016 and August 19, 2022
- Owned a PlayStation 5 between August 19, 2016 and August 19, 2022
- Purchased digital copy of a game from the PlayStation Store during that timeframe
- Purchased an in-game item on your PlayStation console during that timeframe
The class action lawsuit centres on the price of games and add-on content in the PlayStation Store, which is the only way to buy digital goods on Sony PS4 and PS5 consoles
|SONY PRESS OFFICE
Posting regular updates on the PlayStation You Owe Us website, Ms Neill said she was working hard with lawyers Milberg London LLP to ensure Sony settles the case as quickly as possible.
However, despite the push for urgency, the consumer champion warned gamers that it could still be "several years before we can secure compensation for consumers".
Last year, the Competition Appeal Tribunal ruled that anyone who purchased a game or digital item after August 19, 2022 – the date that Alex Neill filed the mass lawsuit – would not be considered a potential plaintiff. That means anyone who has purchased the redesigned "Slim" variant of the PlayStation 5 won't be considered, should the case go in Alex Neill's favour.
According to the consumer champion and her team, the lawsuit was filed for the following reasons:
- Sony has a near monopoly on the sale of digital games and add-on content through its control of the PlayStation Store
- Sony uses this dominance to enforce strict terms and conditions on game developers and publishers
- These terms allow Sony to set the price of digital games and in-game content and charge a 30% commission on every purchase of digital games and in-game content from the PlayStation Store
- This results in excessive and unfair prices to consumers for their digital games and in-game content
- These prices are out of all proportion to the costs of Sony providing these services to its customers
If the lawsuit is successful, the amount of compensation sent out to each individual will be calculated based on how much you spent in the PlayStation Store within the timeframe. The more you spent on digital add-ons and games from Sony, the more you could be owed from the damages
Interest will be paid on any damages sent out.
This is far from a done deal. Sony's legal team has repeatedly argued that Alex Neill's mass lawsuit is "flawed from start to finish" and should be thrown out of court.
The case is scheduled to begin on March 10, 2026 and is expected to last for 10 weeks.
Sony's PlayStation Store works identically to other closed-loop systems, like the digital shops found on Nintendo Switch, Xbox, and Apple's iPhone. Since there's only one way to purchase and install digital goods on the platform, it can be accused of acting like a monopoly.
EU legislation has already forced Apple to allow iPhone owners living in Europe to make digital purchases from alternative marketplaces — not just the App Store — to avoid this issue. Apple says opening up its best-selling smartphone to alternatives could leave users exposed to malware and scams.
The campaigner is following in the footsteps of a number of mass lawsuits against technology firms. For example, US residents who made at least one Google search between October 26, 2006 and September 30, 2013 can currently claim from a vast pot of $23 million (£18 million).
The lawsuit, which alleges Google improperly shared users’ search queries and histories with third-party websites and firms, was settled by Google without admitting wrongdoing. Due to the dizzying number of people who interacted with Google during the timeframe, it works out at just $7.70 (£6) per person.
Additional Reporting By Josie Clarke, Press Association Consumer Affairs Correspondent
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