Gamers fear Microsoft’s control of the video game market (Hakan Nural/Getty)
Microsoft is facing another lawsuit MonopolyInc., a web gamer, is trying to block the $69 billion acquisition of game design firm Activision Blizzard.
The lawsuit, which was filed on Tuesday in federal court in the US state of California, argues that the deal would suppress competition in the industry gamesless than two weeks after the Federal Trade Commission filed a lawsuit to prevent Microsoft from acquiring Activision Blizzard.
The complainants said that, “If permitted for Microsoft With the acquisition of Activision Blizzard, the video game industry could lose significant competition, and Microsoft could have very large market power, with the ability to foreclose competitors, limit production, reduce consumer choices and raise prices. ..”.
A Microsoft representative responded in a statement, saying the merger “will broaden competition and create more opportunities for gamers and game developers.”
Activision Blizzard which produces some of the most popular video games like World of Warcraft, Candy Crush and Call of Duty is one of the few video game companies in the world that has designed and published high quality video games for multiple devices. These include video game consoles, computers and mobile devices.
Since Joe Biden took office in January 2021, his administration has stepped up its war on anticompetitive practices and has opposed a series of merger and acquisition deals.
Last November, the European Commission also launched an in-depth investigation into the compliance of the operation with antitrust rules. And a press release from the European Commission states that the investigation was opened on the basis that “the proposed acquisition could reduce competition in the markets in terms of distribution of video games intended for consoles, personal computers and personal computer operating systems”.
So did the UK competition authority in September.
