Gamers fear Microsoft’s control of the video game market (Hakan Nural/Getty)
Microsoft is facing another antitrust suit from online gamers trying to block its $69bn acquisition of video game designer Activision Blizzard.
The lawsuit, filed Tuesday in a federal court in the US state of California, alleges that the deal would suppress competition in the gaming industry, less than two weeks after a lawsuit was filed by the Federal Trade Commission to prevent Microsoft from acquiring Activision Blizzard.
The complainants said that “If Microsoft were allowed to acquire Activision Blizzard, the video game industry could lose significant competition, and Microsoft could have very significant market power, with the ability to exclude competitors, limit production, reduce consumer choice, and raise prices…” .
A Microsoft representative responded in a statement, saying the merger “will broaden competition and create more opportunities for gamers and game developers.”
Activision Blizzard, which produces some of the most popular video games such as World of Warcraft, Candy Crush and Call of Duty, is one of the few video game companies in the world that has designed and published high-quality video games for multiple devices. These include video game consoles, computers and mobile devices.
Since Joe Biden assumed the presidency in January 2021, his administration has intensified its war against anti-competitive practices, and has opposed a number of merger and acquisition deals.
Last November, the European Commission also opened an in-depth investigation into the deal’s compliance with antitrust standards. And a statement from the European Commission stated that the investigation was opened on the grounds that “the proposed acquisition may reduce competition in the markets in terms of distribution of video games intended for consoles, personal computers and operating systems for personal computers.”
So did Britain’s Competition Authority in September.