The US Congress has accused Sony of “unfair trade practices” within Japan’s video game markets. According to Politico, during a Senate Finance Committee hearing last Thursday, it was claimed that Sony deliberately made exclusivity deals with third-party publishers to ensure popular game titles in Japan wouldn’t appear on Xbox consoles. Two letters were signed by Republican and Democrat members of Congress, all detailing similar concerns that Sony and Japan violated the U.S.-Japan Digital Trade Agreement.
“The Japanese government’s effective policy of non-prosecution when it comes to Sony appears to be a serious barrier to U.S. exports,” said one letter. “with real impacts for Microsoft and the many U.S. game developers and publishers that sell globally but see their earnings in Japan depressed by these practices. Such policies can distort trade every bit as much as high tariffs or non-tariff barriers like discriminatory licensing practices, with the same result of allowing a domestic incumbent to protect its market share from foreign competitors.”
(FYI) US Congress has sent a letter against Sony and Japan for the violation of the IPEF
“Sony pays third-party game publishers not to make their content available on Xbox and systematically negotiates exclusivity arrangements that keep the most popular games in Japan off Xbox.” pic.twitter.com/Lu70756nPS
— Idle Sloth💙💛 (@IdleSloth84_) April 4, 2023
Axios claims that these concerns were pointed out to Congress by Microsoft, despite there being no definitive proof. That said, considering how much of a foothold PlayStation has on the Japanese gaming market alongside Sony’s similar comments towards competition and exclusivity in Microsoft’s Activision Blizzard deal, it is understandable that Microsoft would want to draw more eyes on the issue.