Home industry gaming-and-vfx to prevent Activision's takeover, gamers sued Microsoft in a U.S. court
Gaming And Vfx
CIO Bulletin
2022-12-21
A private consumer lawsuit was filed against Microsoft Corp. in a U.S. court, alleging that the technology company's $69 billion bid to acquire "Call of Duty" developer Activision Blizzard Inc. will illegally subdue competition in the video game industry.
The complaint was filed in federal court in California about two weeks after the U.S. Federal Trade Commission filed a case with an administrative law judge to stop Microsoft, the company that makes the Xbox console, from making the biggest acquisition in the history of the video game market.
The lawsuit also seeks an order prohibiting Microsoft's acquisition of Activision. It was filed on behalf of ten California, New Mexico, and New Jersey video game players.
According to the complaint, the proposed acquisition would give Microsoft "far too much market power in the video game industry," allowing it to shut down competitors, limit output, reduce consumer choice, raise prices, and hurt competition even more.
A Microsoft representative defended the deal in a statement released on Tuesday, stating that it "will increase competition and opportunities for gamers and game developers." After the FTC filed suit, Microsoft's president, Brad Smith said they had full confidence in their case and look forward to presenting it in court.
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