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HomeNewsTechnologyAfter the EU and FTC, gamers now want to block the Microsoft Activision merger

After the EU and FTC, gamers now want to block the Microsoft Activision merger

Microsoft has been sued by 10 people who believe the merger will harm competition

December 21, 2022 / 16:24 IST
(Image Courtesy: Activision)

10 gamers from California in the United States, have filed a private lawsuit against Microsoft that aims to block the proposed Activision Blizzard acquisition for $69 billion.

The deal is already being put through scrutiny by the European Union (EU), and more recently, the United States Federal Trade Commission (FTC). Both lawmakers allege that the acquisition could stifle competition in the space, by blocking off access to Activision most lucrative game franchise, Call of Duty.

The lawsuit echoes that sentiment saying that the deal would give Microsoft superior market power in the industry, "with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition."

Microsoft has repeatedly declared that it was in its best interests to not restrict Call of Duty on rival platforms. As a show of goodwill, it even signed an extensive agreement with Nintendo to bring the games to their platform. PC Digital Marketplace, Steam, is also on their side.

Sony, however, continues to actively oppose the merger. Microsoft tried to give them the same multi-year agreement as Nintendo but the Japanese consumer electronics giant refused.

In a statement shared with the press, Joseph Saveri, the attorney handling the private lawsuit, said that, "it's critical that we protect the market from monopolistic mergers that will harm consumers in the long run."

The proposed merger was announced in January this year, but it doesn't look like it will be happening anytime soon.

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Moneycontrol News
first published: Dec 21, 2022 04:24 pm

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