Sony Wins EU Customs Battle Over Play Station

by Ulrika Lomas, Tax-News.com, Brussels

06 October 2003

The Luxembourg-based European Court of First Instance ruled last week that Sony's Playstation 2 is a computer rather than a games console, and that the manufacturer is therefore eligible for millions of euros in customs refunds.

The CFI supported Sony's argument against the European Commission that the processors contained within the Playstation 2 meant that it is a computer rather than a games console, and that it should therefore be eligible for a lower rate of customs duty. According to reports, the judges agreed that the definition of the product "should be carried out on the basis of the components of the item, and not its purpose."

Speaking to the Wall Street Journal, London-based Sony spokesman, Nick Sharples said that the company was now considering whether to apply for rebates on the customs duties it has paid, which could amount to many millions of euros. However, Sharples indicated that the savings would be relatively small, and are unlikely to be passed on to consumers.

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