The class action on behalf of consumers, developers and publishers of PlayStation digital content made available on the Australian PlayStation Store between 21 December 2017 and 21 December 2023 (inclusive) (claim period). The proceeding is Jordan Kym Sinclair v Sony Interactive Entertainment Inc and Others (NSD 1579 of 2023).

Key Allegations

The claim alleges that during the Claim Period, Sony:

• had a substantial degree of market power in the pleaded market/s for the distribution of Playstation digital content (which includes PlayStation games and add-on content);
• imposed restrictions which prevented PlayStation digital content from being made available for sale or purchased outside the PlayStation Store online (other than limited exceptions); and
• charged excessive commissions (margins) to developers and publishers for the distribution of that PlayStation digital content on the Australian PlayStation Store online, resulting in higher prices of PlayStation digital content purchased by consumers during the Claim Period.

The claim alleges that by engaging in the pleaded conduct summarised above, Sony:

• misused its market power by engaging in conduct that had the purpose, effect or likely effect of substantially lessening competition in the pleaded markets, in breach of s 46 of the Competition and Consumer Act 2010 (Cth) (CCA);
• engaged in the practice of exclusive dealing, in breach of section 47 of the CCA; and
• entered into contracts, arrangements and/or understandings which had the purpose, effect or likely effect of substantially lessening competition, in breach of s 45 of the CCA.

Loss and Damage Claimed

The claim alleges that:

• commissions (margins) imposed by Sony on the sale of PlayStation digital content were materially higher than the commissions that would have existed had the alleged conduct not occurred;
• as a result, the prices of PlayStation digital content during the Claim Period were materially higher than they would have been absent the alleged conduct;
• consumers who purchased PlayStation games and add-on or downloadable content for PlayStation games via the PlayStation Store are entitled to compensation for loss and damage as they paid more for PlayStation digital content purchased than they ought to have as a consequence of Sony’s alleged conduct; and
• developers and publishers who distributed PlayStation digital content via the Australia PlayStation Store are entitled to compensation for loss and damage as the amount they received on the sale of PlayStation digital content was lower than it would have been absent Sony’s alleged conduct.

 Parties

The Applicant is Jordan Kym Sinclair.

The class is comprised of persons who between 21 December 2017 and 21 December 2023 (inclusive):

1. • in Australia purchased PlayStation digital content from or through the Australian online Sony PlayStation Store (Consumer Claimants); and
   • developers or publishers who received, or but for the conduct alleged in the Applicant’s pleading, would have received revenue from the sale of PlayStation digital content on the Australian PlayStation Store.

The Respondents are:

• Sony Interactive Entertainment Inc (a company incorporated in Japan, Commercial Registration Number 30104001087161);
• Sony Interactive Entertainment Europe Limited (a company incorporated in the United Kingdom, CRN 03277793); and
• Sony Interactive Entertainment Network Europe Limited (a company incorporated in the United Kingdom, CRN 06020283).

Status

Discovery has been exchanged. Following discovery, the Applicant is in the process of seeking leave to amend his Statement of Claim, including to extend the Claim Period to capture PlayStation digital content distributed on the Australian PlayStation Store after 21 December 2023. That application is due to be determined by the Court on 14 May 2026.

The matter has not yet been set down for hearing.