Microsoft has been sued in a US court by private consumers who claim that the company’s planned $69bn acquisition of Activision Blizzard maker of “Call of Duty” would unlawfully suppress competition in the video game industry.
The complaint, filed in a federal court in California, comes about two weeks after the US Federal Trade Commission (FTC) filed a case with an administrative law judge to try to halt Microsoft’s completion of the largest-ever acquisition in the video gaming market. Microsoft, which owns the Xbox console, has not yet commented on the lawsuit.
The private lawsuit against Microsoft’s proposed acquisition of Activision also seeks an injunction to block the deal from going through. It was filed on behalf of ten video game players from California, New Mexico, and New Jersey.
The complaint alleges that the acquisition would give Microsoft excessive market power in the video game industry, allowing it to shut out competitors, limit production, decrease consumer choice, increase prices, and further hinder competition. Microsoft has not yet commented on the lawsuit.
After the FTC filed its own case against the acquisition, Microsoft President Brad Smith stated that the company is confident in its case and willing to present it in court.
Plaintiffs’ attorney Joseph Saveri, based in San Francisco, stated that as the video game industry continues to grow and change, it is essential to safeguard the market from monopolistic mergers that will ultimately harm consumers.
Private plaintiffs in the US can pursue antitrust claims in court even if a related case from a US agency is still ongoing. Microsoft’s planned acquisition of Activision, announced in January, is also facing antitrust scrutiny in the European Union.
The FTC previously stated that it filed a case to prevent Microsoft from gaining control over a prominent independent game studio, arguing that the merger would damage competition among rival gaming platforms such as Nintendo and Sony.