Gamers are suing Microsoft over Activision merger

The soap opera surrounding the possible purchase of Activision Blizzard by tech giant Microsoft continues.

This time, the gamers themselves have decided to step forward, as ten have reportedly filed a lawsuit against Microsoft to stop the Activision Blizzard deal from going all the way.

The news of Microsoft’s acquisition of Activision Blizzard surprised many, but some still see the deal as a severe threat to PlayStation and the rest of the gaming industry.

Microsoft is always on the lookout

Gamers have reportedly alleged that Microsoft is monopolizing the industry, leading gamers to claim that the merger of Microsoft and Activision would violate the Clayton Antitrust Act of 1914, which gives Americans the right to sue companies for anti-competitive behavior.

According to the lawsuit, this merger would violate Section 7 of the Clayton Act, which states:

“Acquisitions that lessen competition are prohibited by U.S. antitrust law.”

Moreover, the players emphasize this merger between Microsoft and Activision and go much further by naming Microsoft’s acquisition of Mojang in 2014 and Rare in 2002.

Mergers could harm competition

If we take a closer look at this move by Microsoft, there is no doubt that, if it goes through, it will create an almost absolute monopoly in the video game industry.

If Microsoft acquires Activision, it would have: “enormous market power and the ability to exclude key inputs for rivals and further damage competition.”

Recall that Activision Blizzard is the developer of top-rated video games like:

• Call of Duty
• World of Warcraft
• Minecraft
• Doom
• Microsoft Flight Simulator
• Halo
• The Elder Scrolls

Microsoft and Activision compete directly through these video games on their respective platforms: Battle.net, Microsoft Store, and Game Pass. Therefore, this merger would undoubtedly destroy this competitive dynamic.

Another of the key points highlighted in the lawsuit filed by these ten players is that:

The FTC was directly involved in this soap opera

Holly Vedova, director of the FTC’s Bureau of Competition, stated:

“Today, we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing markets.”

On the other hand, Microsoft responded through Brad Smith, its president:

“Our acquisition will bring Call of Duty to more gamers and platforms than ever. That’s good for competition and good for consumers.”

“Thank you @Nintendo. Any day @Sony wants to sit down and talk, we’ll be happy to hammer out a 10-year deal for PlayStation as well.”

We do not doubt that competition in the industry will cease to be dynamic if the deal goes through. Both between Xbox and PlayStation, Microsoft and Activision, and all because Microsoft would have “enormous market power.”

Header: Activision | Microsoft