Gamers File Private Antitrust Lawsuit To Block Microsoft-Activision Blizzard Merger
The US Federal Trade Commission and the UK Competition Markets Authority apparently aren’t the only ones looking to block Microsoft’s acquisition of Activision Blizzard. A group of 10 gamers has filed a federal antitrust lawsuit to stop the merger over the same gaming monopoly concerns as the government regulatory agencies.
The antitrust lawsuit argues that the $68.7 billion merger violates Section 7 of the Clayton Antitrust Act of 1914 which prohibits acquisitions that will minimize competition or lead to a monopoly. According to the plaintiffs, should the merger push through, it would give Microsoft “an unrivaled position in the gaming industry, leaving it with the greatest number of must-have games and iconic franchises.”
The lawsuit further cites concerns that Microsoft can and will ultimately make the Call of Duty franchise exclusive to PC and Xbox consoles since the company already did it in the past when it acquired ZeniMax Media for $7.5 billion last year. The plaintiffs further argue that online game players prefer to play on the same console with their friends and that studies show that 46% of PlayStation and Nintendo users in the US will likely switch to an Xbox Game Pass subscription following the merger.
“The current trend toward concentration, the lessening of competition, and the tendency to create a monopoly in the video game industry was already harming competition at an alarming rate before the proposed acquisition was announced,” the lawsuit reads. “If Microsoft’s proposed acquisition of Activision-Blizzard is allowed to proceed, the video game industry may lose substantial competition, and Microsoft may have far-outsized market power, with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”
Microsoft, however, continues to argue in favor of the acquisition, saying that the merger will in fact expand competition and will create more opportunities for both game developers and gamers as the company works to bring more games to a wider audience.
