Ten gamers are suing Microsoft over its merger with Activision, claiming that it violates Section 7 of the Clayton Act.
Drawing on the Clayton Antitrust Act of 1914, 10 intrepid gamers are taking on the challenge and taking Microsoft to court to stop its acquisition of Activision. This legislation guarantees Americans legal recourse against companies that engage in antitrust behavior, and these citizens have taken it upon themselves to ensure that this law is upheld.
Ten gamers from California, New Mexico, and New Jersey have filed a private lawsuit to stop Microsoft 's attempted acquisition of Activision . The case seeks an injunction blocking the acquisition.
Bloomberg Law reported today that a group of “video gamers” has filed a lawsuit against Microsoft and Activision, claiming they are violating Section 7 of the Clayton Act. This section prohibits acquisitions that would substantially lessen competition. The complaint, obtained by Kotaku, alleges that the merger could potentially create a monopoly, which would create significant competition problems for other video game companies.
The complaint not only highlights the extent and scope of this Activision–Microsoft as a problem, but also points out that it is just one in a series of Microsoft starting with the acquisition of Mojang in 2014 and the purchase of Rare in 2002.
The lawsuit describes consoles, PCs, AAA games and subscription services as “related product markets,” noting that if the merger goes through, Microsoft would have an extensive portfolio of huge franchises. Call of Duty , World of Warcraft, Minecraft, Doom, Microsoft Flight Simulator, Halo and The Elder Scrolls are just a few examples of the intense competition between Microsoft and Activision. With services like Battle.net , the Microsoft Store and Game Pass , the two powers are battling it out for consumer attention – but if a merger were to happen, that intense rivalry would come to an abrupt end.
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If the merger goes through, the lawsuit claims that “Microsoft would gain undue power to suppress competition.” This applies to both consumer sales and businesses trying to hire skilled video game talent – both of which could be significantly hindered by the merging companies.
Joseph Saveri in San Francisco, an attorney representing the plaintiffs, said that “we need to protect the market from monopolistic mergers that will harm consumers as the video game industry continues to expand and grow.”
Since its initial revelation, the looming Microsoft/Activision merger has been the subject of much debate. Of particular concern to Microsoft is the lawsuit recently filed by the Federal Trade Commission (FTC) . The FTC claims that if the merger were finalized, it would significantly reduce competition in the gaming industry due to Microsoft 's past actions promoting Xbox and Windows PC exclusives . Microsoft has vigorously defended the Activision acquisition , arguing that it will usher in a new era for Call of Duty , where more players and platforms than ever before will be able to experience the game.
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Microsoft has pledged to keep its promise to deliver Call of Duty on other platforms for at least 10 years, responding to criticism over its impending merger with Activision . Microsoft Gaming CEO Phil Spencer accused Sony of trying to protect its dominance in the console market and of trying to expand by undercutting Xbox .
Source: kotaku.com
