Sony's PlayStation facing £5bn lawsuit amid claims it 'ripped off' 9 million customers

Sonys PlayStation is being sued for £5 billion by nine million claimants amid accusations it "ripped people off" with its overpriced games and in-game purchases.

The legal claim is a collective action against the Japanese-owned gaming company, brought by consumer rights champion Alex Neill.

The suit accuses the company of breach of competition law by abusing its market power to impose unfair terms and conditions on game developers as well as publishers, which has forced up prices for its consumers.

According to a report from Sky, the company allegedly "ripped people off" by charging a 30% commission on every digital game and in-game purchase made through the PlayStation Store.

Consumers are said to have been overcharged for their digital gaming purchases by as much as £5 billion over the last six years, the legal action states.

According to the claim filed with the Competition Appeal Tribunal last Friday, consumers in the UK who have purchased digital games or add-on content on their console or via the PlayStation Store since 19 August 2016 are included in the claim and are potentially entitled to compensation.

As at the time of this report, PlayStation is yet to respond to the latest allegations.