Sony is threatening to take legal action against the European
Commission over the classification of its PlayStation 2 as a games
console for the purposes of import duty. Sony argues that the PS2
is as complex as a computer and should be treated as one. Computers
are exempt from import duty in Europe whereas each games console
imported attracts duty at 2.2%.
The dispute arose when Sony applied to the HM Customs &
Excise in the UK, which helps advise European Commission trade
officials. Customs & Excise took the view that the PS2 is not
significantly different from the original PlayStation which was
classified as a games console.
According to FT.com, Sony is concerned about the tariff because
the launch of PS2 in Japan and now in the US has incurred bigger
losses than the company anticipated. If the classification of the
PS2 is not changed soon, the losses will rise because, according to
FT.com, Sony cannot afford to pass the losses on to customers.
