Sony Faces $7.9B UK Mass Lawsuit Over PlayStation Store Pricing: Report
Portfolio Pulse from Shivani Kumaresan
Sony Group Corp (NYSE:SONY) is facing a mass lawsuit in the UK, with claims amounting to $7.9 billion over alleged inflated prices on the PlayStation Store. The lawsuit, representing nearly 9 million UK residents, accuses Sony of abusing its market position by mandating exclusive sales through its store, leading to higher prices due to a 30% commission on developers. The Competition Appeal Tribunal has allowed the case to proceed, excluding individuals who made purchases after the lawsuit's filing in 2022. SONY shares closed down 0.86% at $86.79.
November 22, 2023 | 10:28 am
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NEGATIVE IMPACT
Sony Group Corp is embroiled in a significant legal battle in the UK, with a potential $7.9 billion liability over PlayStation Store pricing practices. The lawsuit's progression may negatively affect investor sentiment.
The news of a large-scale lawsuit with substantial financial implications is likely to create uncertainty among investors and could lead to a negative short-term impact on Sony's stock price. Legal challenges of this magnitude often result in increased volatility and investor caution, especially when the lawsuit is allowed to proceed by a tribunal.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100