A group of 10 gamers in the United States are working together to file a federal antitrust lawsuit against Microsoft regarding its proposed Activision Blizzard acquisition deal.
The lawsuit was first spotted by Bloomberg Law. It argues that the acquisition would provide Microsoft with enough influence over several levels of the gaming industry. The lawsuit also states that Microsoft would be able “to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”
“Microsoft already controls one 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 the lawsuit, Microsoft said that its deal “will expand competition and create more opportunities for gamers and game developers as we seek to bring more games to more people.”
Two law firms are involved in the suit and both made separate statements justifying the legal move.
Joseph Saveri of the Joseph Saveri Law Firm said that “as the video game industry continues to grow and evolve, it’s critical that we protect the market from monopolistic mergers that will harm consumers in the long run.
“This case represents a necessary step in preserving competition in the video game industry and protecting the consumer benefits and innovations that competition brings.”
Joseph Alioto of the Alioto Law Firm said that “nothing has been as destructive to the free enterprise system as the mega-mergers of the last two to three decades. They destroy jobs; they raise prices; they cause quality to diminish and innovation to be stifled.”
The Federal Trade Commission (FTC) has also filed a lawsuit against the merger. Although this lawsuit by the 10 gamers may not cause any serious ripples in the deal, the FTC’s lawsuit is the most likely to block the Microsoft Activision deal.
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