Microsoft Corp has been hit with a private consumer lawsuit claiming the technology company’s $69 billion bid to purchase “Call of Duty” maker Activision Blizzard Inc will unlawfully oppress competition in the video game industry.
The lawsuit was filed on behalf of 10 video game players in California, New Mexico and New Jersey. The private lawsuit also seeks an order blocking Microsoft from acquiring Activision. The complaint alleged that the proposed acquisition would give Microsoft “far-outsized market power in the video game industry, with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”
A Microsoft representative defended the deal, saying that it will expand competition and create more opportunities for gamers and game developers. Microsoft President Brad Smith said, “We have complete confidence in our case and welcome the opportunity to present our case in court.”
The FTC previously said it sued to stop “Microsoft from gaining control over a leading independent game studio.” The agency said the merger would harm competition among rival gaming platforms like Nintendo Co Ltd and Sony Group Corp.
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