Microsoft Sued by Video Gamers Claiming Its Activision Takeover Deal Will Stifle Competition

The US FTC filed a case with an administrative law judge seeking to stop Microsoft from completing its Activision Blizzard takeover.

Advertisement
By Reuters | Updated: 21 December 2022 17:33 IST
Highlights
  • Microsoft earlier announced that it would buy Activision for $69 billion
  • US FTC filed a case with an administrative law judge seeking to stop deal
  • The private lawsuit was filed on behalf of 10 video game players

The private lawsuit also seeks an order blocking Microsoft from acquiring Activision

Microsoft was hit on Tuesday in US court with a private consumer lawsuit claiming the technology company's $69 billion (roughly Rs. 5,71,200 crore) bid to purchase Call of Duty maker Activision Blizzard will unlawfully squelch competition in the video game industry.

The complaint filed in federal court in California comes about two weeks after the US Federal Trade Commission (FTC) filed a case with an administrative law judge seeking to stop Microsoft, owner of the Xbox console, from completing the largest-ever acquisition in the video-gaming market.

The private lawsuit also seeks an order blocking Microsoft from acquiring Activision. It was filed on behalf of 10 video game players in California, New Mexico and New Jersey.

Advertisement

The proposed acquisition would give Microsoft "far-outsized market power in the video game industry," the complaint alleged, "with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition."

Advertisement

A representative for Microsoft did not immediately comment on Tuesday. After the FTC sued, Microsoft President Brad Smith said, "We have complete confidence in our case and welcome the opportunity to present our case in court."

In a statement, plaintiffs' attorney Joseph Saveri in San Francisco said, "As the video game industry continues to grow and evolve, it's critical that we protect the market from monopolistic mergers that will harm consumers in the long run."

Advertisement

Private plaintiffs can pursue antitrust claims in US court, even while a related US agency case is pending. The takeover, announced in January, also faces antitrust scrutiny in the European Union.

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 from Nintendo and Sony Group.

Advertisement

© Thomson Reuters 2022


Is PS Plus better than Xbox Game Pass now? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Catch the latest from the Consumer Electronics Show on Gadgets 360, at our CES 2026 hub.

Advertisement

Related Stories

Popular Mobile Brands
  1. Flipkart Reveals Deals on Phones For its Upcoming Sale: See Offers
  2. Flipkart Sale Early Deals: iPhone 17 Price in India Drops Under Rs. 75,000
  3. Nothing Phones Will Get More Expensive in 2026
  4. Latest Meta Layoffs 2026: Nearly 1,500 Employees Cut from Reality Labs
  5. Here Are the Top 10 Deals on Smartphones During the Upcoming Amazon Sale
  6. Unlike OpenAI, Google's Healthcare Push Takes an Open-Source Approach
  7. OnePlus Mid-Size Performance Phone With 8,000mAh Battery Could Launch Soon
  8. Not China, But This New Country Will Make the New Google Pixel 11 Series
  9. Here's How Much the Motorola Signature Could Cost in India
  10. Best Earbuds Under Rs 3,000 in India You Can Buy Right Now
  1. Motorola Signature Box Price in India, Launch Date Leaked Ahead of Arrival: Expected Specifications
  2. Dhandoraa Now Streaming on Prime Video: Know Everything About This Telugu Drama Film Online
  3. Oppo 6t Series, Oppo A6 4G, Oppo A6x 4G Specifications, Colourways Listed Online; Could Launch Soon
  4. Samsung Galaxy S26 Leak: Base Model Could Finally Get 45W Fast Charging Upgrade
  5. Haier H5E Series 4K Smart Google TVs With Bezel-Less Design Launched in India: Price, Features
  6. Flipkart Republic Day Sale 2026: Deals on iPhone 16, Pixel 10, and More Phones Revealed
  7. Google’s Response to OpenAI’s Healthcare Push Is an Open Model With Medical Imaging Capability
  8. Bandook OTT Release Date: When and Where to Watch it Online?
  9. Shabad: Reet Aur Riwaaz OTT Release: When and Where to Watch it Online?
  10. Taskaree: The Smuggler’s Web Now Streaming Online: Know Where to Watch This Emraan Hashmi Starrer Series Online
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.