A group of gamers has filed a lawsuit to prevent Microsoft from acquiring Activision Blizzard, a publisher of video games.
Microsoft is attempting to finish the largest and most expensive merger of technology businesses while contending with a variety of legal issues.
The Federal Trade Commission filed a lawsuit previously this month to block the acquisition because it suspected it may stifle competition for Microsoft’s Xbox game platform and its expanding game subscription service. The deal is also being looked into by antitrust authorities in the UK and the EU.
In response to this lawsuit, Microsoft told Bloomberg that “arrangement would increase competition and provide additional possibilities for players and game developers as we work to reach a wider audience with our games.” The lawsuit imposed that Microsoft would gain an excessive amount of market share in gaming across all platforms, not just consoles, including PC, cloud-based, and mobile.
The FTC will have a difficult time winning the action since the enforcers must prove that limiting access to “Call of Duty” or other comparable games would be beneficial for Microsoft, who promised to keep the blockbuster game accessible to competitors.
How Will Microsoft Resolve The Lawsuit?
Microsoft will surpass Sony and Nintendo to rank third globally in terms of gaming income. The Xbox system and Game Pass subscription programme may have an advantage over Sony’s PlayStation and a rumoured Game Pass rival due to the expansion of its game library.
Antitrust authorities in the United Kingdom and the European Union are also looking into Microsoft’s proposed acquisition of Activision. Which would be the company’s largest-ever acquisition. The firms initially declared their intent to merge in January and stated they anticipated the transaction to completion in June 2023.
In the days leading up to the judgement, the firm had increased its public support of the deal. According to Smith, Microsoft has pledged to resolve concerns about unfair competition and has already presented the FTC with potential concessions.