The Clayton Antitrust Act of 1914 It gives Americans the right to sue companies for anti-competitive behavior, a fact that 10 self-proclaimed gamers are using to take Microsoft to court in a bid to stop the company’s acquisition of Activision.
how reports Bloomberg’s lawComplaint filed and received today Kotakustates that the plaintiffs, or “video gamers” as they are described, are concerned that “ [Microsoft and Activision] the merger may substantially lessen competition or tend to create a monopoly; The merger, the complaint states, would specifically violate Section 7 of the Clayton Act, which states that acquisitions that lessen competition are prohibited under US antitrust laws. The complaint not only cites the scale and scope of the Activision-Microsoft merger as problematic, but also that this latest proposed union follows Microsoft’s many other acquisitions, from its 2014 purchase of Mojang to its acquisition of Rare in 2022 in the year
Detailing console, PC and AAA games, as well as subscription services as “Relevant Product Markets,” the lawsuit draws attention to how many major franchises would fall under Microsoft’s corporate umbrella if the merger were to go through. Call of Duty:, World of Warcraft:, Minecraft:, Destruction, Microsoft Flight Simulator, Hello!and: The senior spins are just a few examples. It claims that Microsoft and Activision currently compete directly through these titles and services such as Battle.net, the Microsoft Store and Game Pass. A merger would disrupt that competitive dynamic.
If the merger goes through, the lawsuit claims, Microsoft would have “superior market power and the ability to foreclose on competitors and further harm competition.” The lawsuit cites competition, both when it comes to sales to consumers, as well as industry competition to “hire and retain talent in the specialized video game workforce,” which would be “diminished” by the merger.
Kotaku has reached out to Microsoft for comment.
The proposed MIcrosoft/Activision merger has been a source of controversy ever since. its initial statement. Perhaps most troubling for Microsoft a recent lawsuit filed by the FTC. The feds argue that if the merger goes through, it would seriously harm competition in the video game industry, citing Microsoft’s past behavior of prioritizing Xbox and Windows PCs as its gaming platforms. Microsoft disagrees, stating that the Activision acquisition “will bring Call of Duty: more players and more platforms than ever before.”
Speaking Call of Duty:In response to criticism of its proposed merger with Activision, Microsoft has vowed to press on deliver Call of Duty: to other platforms at least 10 years. Phil Spencer, CEO of Microsoft Gaming categorized the criticisms of Sony acquisition as an attempt to “protect its console dominance” and that it is looking to grow by “making Xbox smaller.”