Video gamers sue Microsoft over proposed Activision deal

A group of gamers challenged Microsoft’s planned $68.7 billion acquisition of “Call of Duty” maker Activision Blizzard in court, stating that the merger will wrongfully stifle competition in the video game industry.

The lawsuit filed in a US federal court says the $69bn deal by Microsoft will “create a monopoly in the video game industry”. The complaint comes just two weeks after US regulators asked an administrative judge to stop the deal.

The private lawsuit also seeks an injunction to prevent Microsoft from acquiring Activision. It was filed on behalf of ten gamers from California, New Mexico, and New Jersey. Similarly, to the FTC case, the gamers are seeking a court order barring the companies from completing the merger, nullifying the break-up fee, and paying their legal fees.

According to the gamers’ lawsuit, the merger would violate the Clayton Antitrust Act by reducing competition in the gaming sector and, as a result, harming the public.

A Microsoft representative has defended the deal, saying it “will expand competition and create more opportunities for gamers and game developers.”

The sources for this include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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