Microsoft was sued over purchase of Activision
2022.12.21 08:12
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Microsoft was sued over purchase of Activision
Budrigannews.com – On Tuesday, a private consumer lawsuit against Microsoft Corporation claimed that the technology company’s $69 billion offer to acquire “Call of Duty” maker Activision Blizzard Inc. (NASDAQ:) will illegally limit competition in the video game industry.
The Federal Trade Commission of the United States filed a case with an administrative law judge seeking to stop Microsoft (NASDAQ:) approximately two weeks prior to the filing of the California federal court complaint. owner of the Xbox console, following the completion of the largest-ever video game market acquisition.
Additionally, an order preventing Microsoft from acquiring Activision is sought in the private lawsuit. It was filed in California, New Mexico, and New Jersey on behalf of ten video game players.
The complaint claimed that Microsoft would have “the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition” as a result of the proposed acquisition.
The deal was defended on Tuesday by a Microsoft representative, who stated in a statement that it “will expand competition and create more opportunities for gamers and game developers.” “We have complete confidence in our case and welcome the opportunity to present our case in court,” Microsoft President Brad Smith said following the FTC lawsuit.
“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,” plaintiffs’ attorney Joseph Saveri in San Francisco said in a statement.
Even if a related case against a U.S. agency is pending, private plaintiffs can bring antitrust claims in U.S. court. The European Union’s antitrust regulators are also looking into the takeover, which was announced in January.
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According to an earlier statement, the FTC filed suit to prevent “Microsoft from gaining control over a leading independent game studio.” The organization said the consolidation would hurt contest among rival gaming stages from Nintendo Co Ltd (TYO:) additionally, Sony Group, Inc.
