After a suit from the Federation Trade Corporation of the US, Microsoft has been served with another lawsuit against its $69 billion acquisition of Activision, the maker of Call of Duty.
10 video game players from California, New Mexico, and New Jersey have filed a private lawsuit against Microsoft, seeking an order to block Microsoft’s acquisition of Activision.
The complaint notes that the acquisition would give Microsoft excessive market power in the video game industry, allowing them to eliminate competition, reduce the availability of options for consumers, increase prices, and otherwise hinder competition.
Earlier this month, FTC had filed an injunction against Microsoft’s purchase of Activision, echoing the same sentiments that the merger would give the Redmond giant unparalleled control over the video game market, and it could use its position to harm the competition.
Microsoft, on several occasions, has consistently stated it plans to bring Call of Duty to more and more players. To prove its case, Microsoft announced a 10-year agreement with Nintendo to make Call of Duty available on Nintendo consoles following its merger with Activision, according to Spencer. Additionally, the company has committed to continuing to offer Call of Duty on Steam in addition to Xbox.
Microsoft’s acquisition of Activision raises antitrust concerns, says gamers and regulators
However, regulators worldwide are heavily scrutinizing the merger. Antitrust regulators in Europe and the UK’s Markets Authority have been closely investigating the Microsoft-Activision deal, and both organizations believe that the deal would give Microsoft the ability to use its dominant position to harm competition in the market.
According to Microsoft, Sony is the “loudest objector” to the deal. The company states that it offered a 10-year deal similar to the one it made with Nintendo to release the upcoming Call of Duty titles on PlayStation on the same day as Xbox, but Sony declined the offer.
With all the legal troubles surrounding the merger, It is now uncertain whether the Microsoft-Activision deal will be completed by January 2023 as originally expected.
10 video game players from California, New Mexico, and New Jersey have filed a private lawsuit against Microsoft, seeking an order to block Microsoft’s acquisition of Activision.
The complaint notes that the acquisition would give Microsoft excessive market power in the video game industry, allowing them to eliminate competition, reduce the availability of options for consumers, increase prices, and otherwise hinder competition.
Earlier this month, FTC had filed an injunction against Microsoft’s purchase of Activision, echoing the same sentiments that the merger would give the Redmond giant unparalleled control over the video game market, and it could use its position to harm the competition.
Microsoft, on several occasions, has consistently stated it plans to bring Call of Duty to more and more players. To prove its case, Microsoft announced a 10-year agreement with Nintendo to make Call of Duty available on Nintendo consoles following its merger with Activision, according to Spencer. Additionally, the company has committed to continuing to offer Call of Duty on Steam in addition to Xbox.
Microsoft’s acquisition of Activision raises antitrust concerns, says gamers and regulators
However, regulators worldwide are heavily scrutinizing the merger. Antitrust regulators in Europe and the UK’s Markets Authority have been closely investigating the Microsoft-Activision deal, and both organizations believe that the deal would give Microsoft the ability to use its dominant position to harm competition in the market.
According to Microsoft, Sony is the “loudest objector” to the deal. The company states that it offered a 10-year deal similar to the one it made with Nintendo to release the upcoming Call of Duty titles on PlayStation on the same day as Xbox, but Sony declined the offer.
With all the legal troubles surrounding the merger, It is now uncertain whether the Microsoft-Activision deal will be completed by January 2023 as originally expected.
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