Sony Interactive Entertainment (SIE) has hit a snag in San Francisco, as a federal judge rejected the company's proposed settlement regarding digital game sales. Sony had offered to provide $7.8 million (approximately 10.7 billion KRW) in digital credits to customers, but the court did not accept the proposal.

The lawsuit began in 2021, sparked by Sony's decision to restrict digital game sales exclusively to the PS Store while claiming its pricing was 'highly competitive' compared to other retailers. In 2019, Sony unilaterally terminated agreements with retailers like Best Buy and GameStop to sell digital game download codes and deactivated unsold codes, effectively centralizing sales through the PS Store. Since then, the company has faced criticism for gaining total control over the pricing of PlayStation digital games.

Approximately 4.4 million users joined the class-action lawsuit, alleging that Sony's monopolistic business practices violated antitrust laws. Sony attempted to settle to avoid the costs and complications of litigation, though it adamantly denied any wrongdoing. The proposed settlement covered PS Store purchases made between April 2019 and December 2023.

Judge Martinez-Olgin of the San Francisco District Court dismissed the offer as a 'coupon settlement,' noting that such agreements are generally not favored by the court. The ruling stated that any new motion for preliminary approval must address the adequacy of these coupons and prove that the value and structure of the settlement are defensible.

The court further pointed out that the plaintiffs failed to provide sufficient information regarding the implementation of the settlement and the fairness of its financial value. It noted a lack of estimates regarding what individual plaintiffs would receive, the potential recovery range, or the discount rates applied to the claims.

If the $7.8 million is divided among the 4.4 million participants, each user would receive approximately $1.77 (approx. 2,400 KRW) in PS Store credit. Given that the legal team is reported to have already received $2.61 million (approx. 3.6 billion KRW) in fees, it is highly unlikely that the settlement would have been accepted even if it hadn't been rejected by the court.

The court's decision demonstrates that the U.S. judiciary is applying strict standards to companies that leverage their monopoly to disadvantage consumers. Attention is now focused on how Sony and the plaintiffs will proceed with a revised settlement or whether the litigation will be prolonged.