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twesterm said:

It looks like places were importing the game and then selling it and that's what Sony has issues with.

Apparently the article says it's illegal to import games or is it illegal to import and sell them?

In Europe it is, unfortunately, illegal to import and resell all types of goods without the approval of the maker of those goods. Goods in Europe, therefore, might sell at a much higher price than goods in, for example, the US because retailers in Europe are unable to buy the goods in the US and sell them in Europe without approval of the producer (and the producer won't give such an improval because he will then loose a part of his profit margin).