Microsoft Wins Dismissal of Gamers' Suit Over $69 Billion Activision Deal

The plaintiffs were given 20 days to refine their legal challenge after the federal judge ruled that the lawsuit lacked allegations.

Microsoft Wins Dismissal of Gamers' Suit Over $69 Billion Activision Deal

Photo Credit: Reuters

Microsoft-Activision Blizzard deal would not harm video game competition

Highlights
  • The plaintiffs were given 20 days to refine their legal challenge
  • US antitrust law let private consumers to challenge mergers
  • An evidentiary hearing before the FTC is scheduled in early August
Advertisement

Microsoft on Monday won the dismissal of a private consumer antitrust lawsuit over its $69 billion (about Rs. 5,70,300 crore) proposed purchase of Call of Duty maker Activision Blizzard, but the plaintiffs were given 20 days to refine their legal challenge.

A federal judge in San Francisco ruled that the lawsuit from a group of video game plaintiffs "lacks allegations" supporting their claim that the proposed acquisition would harm market competition.

"Plaintiffs' general allegation that the merger may cause 'higher prices, less innovation, less creativity, less consumer choice, decreased output, and other potential anticompetitive effects' is insufficient," wrote US District Judge Jacqueline Corley. "Why? How?"

The decision does not affect the US Federal Trade Commission's (FTC) regulatory challenge to the largest-ever gaming industry deal. Microsoft announced its bid last year, and it also faces competition scrutiny in the EU and UK. Microsoft has denied the deal would harm video game competition.

US antitrust law allows private consumers to challenge mergers and acquisitions apart from government actions. An evidentiary hearing before the FTC is scheduled in early August.

A spokesperson for Microsoft and lawyers for the company did not immediately respond to messages seeking comment.

Joseph Saveri, a lawyer for the plaintiffs, told Reuters they planned to submit an amended lawsuit "with additional factual detail" to "address all of the ways in which the judge indicated we need to allege more."

Corley scrapped a planned hearing on whether to issue a preliminary injunction. A status hearing is scheduled for April 12.

The case is Demartini v. Microsoft Corp, US District Court, Northern District of California, 3:22-cv-08991.

For plaintiffs: Joseph Alioto of Alioto Law Firm; and Joseph Saveri of Joseph Saveri Law Firm

For Microsoft: Rakesh Kilaru of Wilkinson Stekloff, and Valarie Williams of Alston & Bird

© Thomson Reuters 2023


From Elden Ring to BGMI's ban, 2022 gave us a lot in the gaming space. We discuss it all 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.
Comments

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2024 hub.

Vivo’s X Flip Spotted on 3C Website With Model Number and Fast Charging Details: Report
Redmi Note 12 Turbo Launch Date Set for March 28; Confirmed to Feature Snapdragon 7+ Gen 2 SoC, Triple Cameras
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »