Gamers are suing Microsoft to prevent merger with Activision
Clayton Antitrust Act of 1914 gives Americans the right to sue companies for anticompetitive conduct, a practice that 10 self-described gamers are using to take Microsoft to court to block the company’s acquisition of Activision.
Like reported by Bloomberg Lawcomplaint, filed today and collected by Kotakustates that the plaintiffs, or “video players” as they describe them, are concerned that “the [Microsoft and Activision] mergers may significantly reduce competition or tend to create monopolies;” According to the complaint, the merger would specifically violate Section 7 of the Clayton Act, which states that an acquisition that reduces competition is prohibited under U.S. antitrust law. The complaint not only cites the size and scope of the Activision and Microsoft merger as questionable, but also that this latest proposed alliance follows numerous other Microsoft acquisitions, from the 2014 purchase of Mojang to to the acquisition of Rare in 2002.
Thoroughly placing consoles, PCs, and AAA games, as well as subscription services as the “Relevant Product Marketplace,” the lawsuit draws attention to how many major franchises will be located. under the corporate umbrella of Microsoft if the merger takes place. call of duty, World of Warcraft, Minecraft, Death, Microsoft Flight Simulator, Haloand The Elder Scrolls just a few examples cited. It asserts that currently Microsoft and Activision compete directly through these titles and services such as Battle.net, Microsoft Store, and Game Pass. The merger would disrupt that competitive dynamic.
If the merger goes ahead, the lawsuit claims, Microsoft will wield “superior market power and the ability to seize key inputs to competitors and further harm competition.” The lawsuit addresses competition as it relates to consumer sales, as well as industry competition to “hire and keep talent in a specialized video game workforce,” which This will “reduce” upon merger.
Kotaku Contacted Microsoft for comment.
I recommendThe crosoft/activision merger has been a controversial lightning rod ever since Its original announcement. Perhaps the most unsettling thing for Microsoft is recently filed lawsuits from the FTC. The unions allege that if this merger takes place, it will severely damage competition in the video game industry, citing Microsoft’s previous behavior of prioritizing Xbox and Windows PCs as platforms. for your games. Microsoft disagreed, claiming that the acquisition of Activision would “bring call of duty for more gamers and more platforms than ever before.”
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Talk about call of dutyIn the face of criticism about the planned merger with Activision, Microsoft has pledged to continue deliver call of duty to other platforms for at least 10 years. Microsoft Games CEO Phil Spencer has categorize criticisms of Sony about the acquisition as an attempt to “defend its dominant position on the console” and said that it seeks to grow by “making Xbox smaller”.