A private consumer lawsuit was filed against Microsoft Corp on Tuesday in a US court, alleging that the technology company’s $69 billion bid to acquire “Call of Duty” maker Activision Blizzard Inc will unlawfully squelch competition in the video game industry.
The complaint was filed in federal court in California about two weeks after the US Federal Trade Commission asked an administrative law judge to stop Microsoft, the owner of the Xbox console, from completing the largest-ever acquisition in the video-gaming market.
The private lawsuit also seeks an injunction to prevent Microsoft from acquiring Activision. It was filed on behalf of ten gamers from California, New Mexico, and New Jersey.
According to the complaint, the proposed acquisition would give Microsoft “far-outsized market power in the video game industry,” with the ability to “foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”
On Tuesday, a Microsoft representative did not respond immediately. “We have complete confidence in our case and welcome the opportunity to present our case in court,” Microsoft President Brad Smith said after the FTC sued.
“As the video game industry continues to grow and evolve, it’s critical that we protect the market from monopolistic mergers that will harm consumers in the long run,” said plaintiffs’ attorney Joseph Saveri in a statement.
Private plaintiffs can file antitrust claims in federal court in the United States even if a related federal agency case is pending. The takeover, announced in January, is also being investigated for antitrust violations in the European Union.
The FTC previously stated that it filed the lawsuit to prevent “Microsoft from gaining control of a leading independent game studio.” The merger, according to the agency, would harm competition between rival gaming platforms from Nintendo Co Ltd and Sony Group Corp.
