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After FTC, Microsoft is now being sued by gamers over the $69 billion acquisition of Activision Blizzard
23 Dec, 2022 / 05:43 am / Microsoft

Source: http://www.mashable.com

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Mashable: Ten American gamers, including three who play solely on PlayStation systems, have filed the complaint.

Microsoft's proposed acquisition of Activision Blizzard for $68.7 billion has been as contentious as one might anticipate. The deal has been authorized in certain countries, such as Saudi Arabia and Brazil, but it is facing backlash in other, more important markets, including the European Union and the United States.

The UK's Competition and Markets Authority (CMA) is looking into it, while the US Federal Trade Commission(FTC) has publicly stated that it opposes the merger. Independent gamers have now joined the lawsuit against Microsoft over the purchase.

Ten American gamers, including three who play solely on PlayStation systems, have filed the complaint. Importantly, this complaint is not a class action and simply names Microsoft as a defendant, not Activision Blizzard.

The lengthy document claims that the industry as a whole would suffer greatly if the transaction were to go through. The consequences of Activision's games being exclusive to Microsoft's platforms include diminished competition, higher prices, less inventiveness, and lower output.

The plaintiffs have asked that the acquisition agreement between Microsoft and Activision be declared null and void and that the companies be prohibited from ever again taking such steps. They also want Microsoft to cover the legal fees and other expenses associated with the case. The lawsuit's viability has yet to be tested in court.

On Tuesday, a Microsoft spokesperson defended the agreement, saying in a statement that it "will boost competition and generate more options for gamers and game developers." In response to a lawsuit filed by the FTC, Microsoft President Brad Smith said, "We are completely sure of our position and welcome the chance to make our case in court."

An attorney for the plaintiffs, Joseph Saveri of San Francisco, said in a statement, "As the video game industry continues to develop and evolve, it is vital that we defend the market from monopolistic mergers that will harm consumers in the long term."