Microsoft dodged a potential legal hurdle in concluding its $69 billion deal to acquire video game company Activision Blizzard, creator of “Call of Duty”, when a US judge on Friday dismissed a private lawsuit filed by game users to initially block the acquisition.
The plaintiffs sued Microsoft in a California federal court in December to overturn the deal, which they said was harmful to competition..
Judge Jacqueline Scott Corley of San Francisco Federal Court said in a ruling late Friday that video game users did not show that they would suffer “irreparable harm” if the acquisition was allowed to proceed..
Microsoft and its lawyers assert that the acquisition will benefit consumers.
Corley rejected claims by video game users that Microsoft would limit the game’s availability. It said there was no evidence that the company would stop making existing versions of Call of Duty after the planned acquisition.
“The day after the acquisition they can play the same way they played with their friends before the acquisition,” Corley wrote“.
It also said it was “unlikely” that Microsoft would make any newer version of “Call of Duty” exclusive to the company’s platform.
A Microsoft spokesperson on Monday did not respond to a request for comment.
Joseph Alioto, a lawyer for the video game users, said Monday they would continue to challenge the deal despite losing the preliminary round.
The court order comes just days after Microsoft received approval for the deal from European Union antitrust authorities. The deal is subject to scrutiny from the US Federal Trade Commission, as well as in China and South Korea.
The deal, which would be the biggest ever in the gaming industry, was rejected by British competition authorities. The deadline for Microsoft to appeal the decision is May 24.
US antitrust law allows plaintiffs to bring claims against mergers and acquisitions.
2023-05-23 02:04:02
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