Sony Under Fire for Alleged PlayStation Market Abuse

Sony is currently facing allegations of market abuse related to its PlayStation store practices, with investigations being carried out into the matter. These accusations come after similar scrutiny was placed on Xbox regarding its potential to stifle competition with its attempted acquisition of Activision Blizzard. Sony's practices have been under investigation since 2019 when it announced the discontinuation of digital download codes at third-party retailers for its PS4. Despite the release of the PS5 in 2020, Sony's store practices have remained unchanged. While gift cards can still be purchased from third-party sellers, digital download codes are no longer available. This has raised concerns about the potential for Sony to control game prices without any competition to offer cheaper alternatives for customers. While a lawsuit was filed in 2021 by consumers on this issue, it was dismissed by the judge who deemed that there was no evidence of Sony deliberately cutting off competition by selling its products exclusively through the PS store. However, another antitrust lawsuit was filed against Sony in the UK in August 2022 by a consumer rights expert, and the outcome of this case is yet to be determined.

The Romanian Competition Council has initiated an investigation into Sony Interactive Entertainment Europe Limited and its subsidiaries for possible infringement of competition rules. The inquiry was launched because PlayStation restricts the sale of PlayStation-compatible games to its own PS Store, preventing third-party retailers from selling them. Romania has taken issue with this policy as it believes it discourages Romanian studios from developing PlayStation-compatible games and because the PlayStation brand is popular among Romanian gamers. An official statement released by the Competition Council was shared on ResetEra and digitally translated.

Approximately 1.3 million gamers and 127 video game studios in Romania are at risk of being impacted by Sony's recent decision, as per public information. The Competition Council has already conducted inspections at Sony's European headquarters to gather additional evidence and information, as stated in the announcement. The outcome of the UK's antitrust class-action lawsuit and the Romanian Competition Council investigation is yet to be determined. However, considering the UK's strict approach towards Xbox, it is possible that Sony may face challenging times in the upcoming months regarding its PS store practices from various angles.

Source: ResetEra