Microsoft faces a private consumer lawsuit in US court over its $69 billion bid to acquire Activision Blizzard, the maker of Call of Duty, on allegations that the deal will stifle competition in the video game industry.
This lawsuit, filed in federal court in California, comes just two weeks after the US Federal Trade Commission (FTC) filed a case against Microsoft, seeking to halt the company’s largest-ever acquisition in the gaming market.
The private lawsuit, brought on behalf of 10 video game players across California, New Mexico, and New Jersey, also demands an order preventing Microsoft from proceeding with the purchase of Activision.
According to the complaint, this proposed acquisition would grant Microsoft significant market power in the video game industry, enabling the company to suppress rivals, restrict output, limit consumer choice, raise prices, and impede competition.
Microsoft’s representative had no immediate comment on the matter. However, following the FTC lawsuit, Microsoft President Brad Smith expressed confidence in their case and welcomed the opportunity to present it in court.
In a statement, Joseph Saveri, the attorney representing the plaintiffs in San Francisco, emphasized the necessity of safeguarding the video game market from monopolistic mergers that would ultimately harm consumers.
In the United States, private plaintiffs can pursue antitrust claims in court even while a related case is pending with a government agency. In addition to the US regulatory scrutiny, the acquisition is also subject to antitrust investigations in the European Union.
Previously, the FTC stated that it filed the lawsuit to prevent Microsoft from gaining control over a prominent independent game studio, which would negatively impact competition among gaming platforms, including Nintendo and Sony Group.
© Thomson Reuters 2022
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