Daily Management Review

Gamers File A Lawsuit To Block The Microsoft-Activision Merger


Gamers File A Lawsuit To Block The Microsoft-Activision Merger
Ten gamers are suing Microsoft to prevent the company from merging with Activision Blizzard, the company that makes Call of Duty. The Xbox console maker's acquisition of its rival for $69 billion (£56 billion), according to the lawsuit filed in a US federal court, will "create a monopoly in the video game industry."
The complaint was submitted two weeks after US regulators asked an administrative judge to halt the transaction. The merger would be the biggest technology deal in the history of the video game industry.
According to the complaint, the proposed acquisition would give Microsoft "far-outsized market power in the video game industry," giving it the power to eliminate competitors, restrict output, limit consumer choice, increase prices, and further stifle competition.
Microsoft, however, is supporting the proposed acquisition. According to a spokesman, "This deal will increase competition and produce more opportunities for players and game developers as we strive to bring more games to more people."
Similar issues were brought up by the Federal Trade Commission (FTC) in their complaint almost two weeks ago. The US business watchdog cited Activision as one of a select group of leading video game studios that produced top-notch games for various platforms.
The agency claimed in a press release that the proposed acquisition would give Microsoft "both the means and motive to harm competition" by manipulating prices, degrading games on rival video game consoles, or "withholding content from competitors entirely, resulting in harm to consumers."
Brad Smith, the president of Microsoft, stated the company had "complete confidence in our case" and welcomed the chance to argue it in court after the FTC filed its lawsuit.
Microsoft also made a similar offer to rival Sony, which makes the PlayStation console, and stated that if the acquisition went through, it would make Call of Duty available on Nintendo for 10 years.
"This sounds alarming, so I want to reinforce my confidence that this deal will close," Activision Blizzard chief executive Bobby Kotick wrote in a letter to staff that was shared on the company's website. "The allegation that this deal is anti-competitive doesn't align with the facts, and we believe we'll win this challenge."
As a result of US President Joe Biden's promise to take a tougher stance against monopolies, this has grown to be one of the most prominent legal battles to take place.
The takeover, which was announced in January, is also being challenged in court in the UK and the European Union.
(Source:www. graphic.com.gh)