In order to prevent Microsoft from acquiring Activision Blizzard Deal, ten US gamers have launched a federal antitrust case in San Francisco. There are worries that Microsoft may grow to a size where it will “to forclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”
All about the lawsuit filed against Activision Blizzard deal
The lawsuit about Activision Blizzard deal stated, “Microsoft already controls of the industry’s most popular and largest video game ecosystems,” “The proposed acquisition would give Microsoft an unrivaled position in the gaming industry, leaving it with the greatest number of must-have games and iconic franchises.”
In response to this lawsuit, Microsoft told Bloomberg about the Activision Blizzard deal that “This deal will expand competition and create more opportunities for gamers and game developers as we seek to bring more games to more people.” The about the Activision Blizzard deal lawsuit contends that Microsoft would gain an excessive amount of market share in gaming across all platforms, not just consoles, including PC, cloud-based, and mobile.
Although it’s unlikely that the Activision Blizzard deal lawsuit would have a significant impact on the acquisition, it’s not the only challenge Microsoft is facing in its pursuit of Activision Blizzard. The FTC also revealed earlier this month that it was suing Microsoft in an effort to “seek[s] to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition.” This viewpoint is shared in the current DeMartini v. Microsoft Corp. lawsuit brought out by the ten gamers stated above.
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It also has issues with EU regulators, who are asking other game developers their thoughts on the acquisition. Of particular concern is whether Xbox will be able to release lower-quality versions of games on other platforms or to release Activision Blizzard games on Xbox first, as Epic Games has done for PC gamers.
The acquisition has been delayed until until June 2023 due to the obstacles Microsoft is currently facing, mainly a legal dispute with the FTC. As a result, it will be some time before the deal is finalised and we can assess its effects on the industry.