The Competition Authority recently imposed a significant penalty of €13,5 million on Sony for abusing its dominant position in the market for the supply of video game controllers for the PlayStation 4 (PS4) console. This decision follows a complaint filed by Subsonic, a French manufacturer of video game controllers. The sanction concerns two specific practices implemented by Sony over the past four years. On the one hand, the use of technical countermeasures aimed at disrupting the operation of third-party controllers, and on the other hand, an opaque licensing policy, thus hindering competition in the market for controllers for the PS4.
Sanctioned Practices
The first sanctioned practice concerns the deployment by Sony, from November 2015, of technical countermeasures allegedly intended to combat counterfeiting. However, these measures have resulted in third-party controllers regularly being disconnected during PS4 operating system updates, affecting all "off-license" manufacturers. The second practice concerns an opaque licensing policy, preventing certain competing manufacturers from obtaining the access criteria for the OLP partner program, necessary to avoid disconnections. These practices combined have damaged the brand image of third-party manufacturers, hindering their expansion in the market.
The PS4 Controller Production Model and the Barriers Put in Place by Sony
The PS4, launched in 2019, comes with Sony's DualShock 4 controller, also sold separately. Sony holds a dominant position in the PS4 controller market due to its reputation, product quality and compatibility with the console. However, the Competition Authority identified entry barriers put in place by Sony, including technical countermeasures and an opaque licensing policy, which limited competitors' access to the market.
The €13,5 million sanction aims to crack down on Sony's anti-competitive practices, highlighting the importance of maintaining a fair environment in the video game accessories market. This decision could have significant implications for how large companies interact with third-party manufacturers, fostering fairer competition and spurring innovation in the video game industry.