Microsoft gets sued by American video gamers to stop Activision acquisition

The lawsuit has been filed on behalf of 10 video game players in California, New Mexico, and New Jersey, seeking an order blocking Microsoft from acquiring Activision

A private consumer lawsuit was filed against Microsoft Corp on Tuesday in an US court claiming the technology company's $69-billion bid to purchase "Call of Duty" maker Activision Blizzard will unlawfully crush the competition in the video game industry.

The lawsuit has been filed on behalf of 10 video game players in California, New Mexico, and New Jersey, seeking an order blocking Microsoft from acquiring Activision.

The lawsuit has come about two weeks after the US Federal Trade Commission filed a case with an administrative law judge seeking to stop Microsoft, owner of the Xbox console, from completing the largest-ever acquisition in the video-gaming market.

The proposed acquisition would give Microsoft "far-outsized market power in the video game industry," the complaint alleged, "with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition".

According to a Reuters report, a Microsoft representative on Tuesday defended the deal, saying in a statement that it "will expand competition and create more opportunities for gamers and game developers." After the FTC sued, Microsoft President Brad Smith said, "We have complete confidence in our case and welcome the opportunity to present our case in court."

"As the video game industry continues to grow and evolve, it's critical that we protect the market from monopolistic mergers that will harm consumers in the long run," said plaintiffs' attorney Joseph Saveri in San Francisco in a statement.

Private plaintiffs can pursue antitrust claims in U.S. court, even while a related U.S. agency case is pending. The takeover, announced in January, also faces antitrust scrutiny in the European Union.

The FTC previously said it sued to stop "Microsoft from gaining control over a leading independent game studio." The agency said the merger would harm competition among rival gaming platforms from Nintendo Co and Sony Group Corp.
 

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