PS4: Sony fined 13.5 million euros for abuse of dominant position

Sony worked, completely illegally and for more than four years, to prevent gamers from benefiting from more affordable PlayStation 4 controllers offered by third-party suppliers. This is what the Competition Authority denounces in a press release released this Wednesday, December 20, which announces that it has imposed a fine of 13.5 million euros on the Japanese parent company of Sony and three subsidiaries in Europe and France. . It was following a referral from Subsonic, a French manufacturer of video game controllers, that this decision occurred.

Marketed since 2019, the PS4 controller produced by Sony or licensed manufacturers costs between 60 and 75 euros. Those produced by third parties who do not have a paid license are much less expensive. To prevent the purchase of these unofficial controllers, Sony implemented illicit practices, notes the Competition Authority. First, it knowingly caused malfunctions of “unofficial” PS4 controllers, starting in November 2015, “allegedly implemented to combat counterfeiting, and which had the effect of affecting the proper functioning of the controllers third-party games”, leading in particular to their regular disconnection.

Also read: Wolverine, Venom... future video games from Sony studio Insomniac Games leak after a massive cyberattack

Furthermore, the Authority also maintains that Sony did not clearly reveal the conditions necessary to obtain the official license to manufacture and sell compatible controllers. This policy therefore prevented competing companies from joining the “OLP” program, the only way to obtain a license for third-party manufacturers, essential for the controllers to work correctly with the PS4.

This opaque policy therefore allowed Sony to apply the criteria “in a discretionary manner”. The Japanese giant was thus able to favor its own controllers or those of its privileged partners, to the detriment of other competitors and consumers. Thus placing it in a dominant position in the market for the supply of controllers for PS4.

The competition watchdog therefore concludes that these practices have damaged the reputation of third-party manufacturers among players and distributors. Players may have believed that third-party controllers were of poor quality or non-compliance, and distributors may have reduced their offerings or visibility. This therefore slowed the development of Sony's competitors, by limiting their sales and market share. As such, Sony and three of its subsidiaries will have to pay a fine of 13.5 million euros. As a reminder, Sony's turnover was estimated at 6.3 billion euros in 2022.