Video gamers sue Microsoft in US court to stop Activision takeover
- Microsoft previously declared that it would pay $69 billion to acquire Activision.
- To halt the deal, the US FTC filed a case with an administrative law court.
- Ten gamers brought the case on their own behalf in a private court.
A private consumer lawsuit against Microsoft was filed in a US court on Tuesday, alleging that the technology company's $69 billion (approximately Rs. 5,71,200 crore) offer to buy Call of Duty creator Activision Blizzard will unjustly stifle competition in the video gaming industry.
About two weeks ago, the US Federal Trade Commission (FTC) filed a complaint with an administrative law judge to prevent Microsoft, the company that owns the Xbox console, from consummating the largest-ever acquisition in the video-gaming industry. In California's federal court, the complaint was submitted.
A court order to prevent Microsoft from acquiring Activision is another request made in the private case. They were represented by ten video game players from California, New Mexico, and New Jersey. According to the complaint, the proposed merger would give Microsoft 'far-outsized market power in the video gaming sector,' enabling it to 'foreclose competitors, limit output, diminish consumer choice, raise prices, and further hinder competition.'
On Tuesday, a Microsoft representative opted not to respond right away. Brad Smith, the president of Microsoft, said this in response to the FTC's lawsuit: 'We have total confidence in our position and welcome the opportunity to present our argument in court.'
Plaintiffs' lawyer Joseph Saveri in San Francisco released a statement in which he said, 'As the video game industry continues to develop and evolve, it's vital that we defend the market from monopolistic mergers that will harm consumers over time.'
Private plaintiffs are still permitted to pursue antitrust cases in US courts even though a pertinent US government case is still pending. Prior to filing suit, the FTC stated that it did so to prevent 'Microsoft from controlling a leading independent game firm.' According to the agency, the combination would hurt competition between Nintendo and Sony Group's and Nintendo's rival gaming platforms.