A small group of gamers band together to sue Microsoft over the Activision Blizzard deal

A group of 10 gamers in the US have joined forces to file a federal antitrust lawsuit against Microsoft over its proposed acquisition of Activision Blizzard.

As discovered by Bloomberg lawThe lawsuit argues that the acquisition will give Microsoft enough leverage at multiple levels of the gaming industry “to foreclose competitors, limit production, limit consumer choice, increase prices, and further inhibit competition.”

“Microsoft already controls one of the most popular and largest video game ecosystems in the industry,” the lawsuit alleges.

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“The proposed acquisition would give Microsoft an unrivaled position in the gaming industry and leave it with the largest number of must-have games and iconic franchises.”

Microsoft issued the following statement in response to Bloomberg Law’s lawsuit: “This deal will expand competition and create more opportunities for gamers and game developers as we strive to bring more games to more people.”

The two law firms behind the lawsuit have also issued separate statements supporting the lawsuit.

“As the video game industry continues to grow and evolve, it is critical that we protect the market from monopolistic mergers that will harm consumers in the long term,” said Joseph Saveri of the law firm Joseph Saveri.

“This case represents a necessary step to preserve competition in the video game industry and to protect the consumer benefits and innovation that competition brings.”

“Nothing has been as destructive to the free enterprise system as the mega-mergers of the last two to three decades,” said Joseph Alioto of the Alioto law firm. “They destroy jobs, they raise prices, they lower quality and stifle innovation.”

Whether this lawsuit actually blocks the merger or is just a shakedown by Microsoft is more of the latter.

The lawsuit follows the Federal Trade Commission’s own lawsuit against the merger, and it is this path that will most likely result in the deal being blocked, if at all.

Rather, this particular lawsuit is effectively a class action in all but name. Analysis of FOSS Patents suggests that it depends on the possibility that Microsoft would rather just pay the plaintiffs to end the lawsuit than fight them in court.

More lawsuits of this nature are likely to arise as Microsoft seeks to consolidate its resources in fighting the FTC as the primary lawsuit.

Download at: https://www.eurogamer.net/small-band-of-gamers-team-up-to-sue-microsoft-over-activision-blizzard-deal

Fry Electronics Team

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