US gamers sue to block Microsoft's Activision buyout, but majority in UK fine with it - MrLiambi's blog


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Thursday, 22 December 2022

US gamers sue to block Microsoft's Activision buyout, but majority in UK fine with it

A group of gamers have teamed up to sue in an attempt to stop Microsoft's buyout of Activision Blizzard.

Reuters reports that a complaint filed in a federal court in California states that the deal could substantially lessen competition or create a monopoly in violation of the Clayton Act.

The private anti-trust case was instigated by a group of 10 delf-identified gamers from California, New Jersey and New Mexico.

The group says they have "the express interest and intent in ensuring that the industry remains competitive, with the utmost innovation, output, choice, and price constraints, now and in the future,"

Surprisingly, the group doesn't consist of entirely PlayStation players, though eight of the ten use it as their primary system.

The lawsuit states that "if Microsoft's proposed acquisition of Activision Blizzard is allowed to proceed, the video game industry may lose substantial competition, and Microsoft may have far-outsized market power, with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition."

In the UK, on the other hand, the majority seem to be in favour of the acquisition.

The Competition and Markets Authority (CMA) has released a summary of responses after asking members of the public to weigh in on the situation.

Around 75 per cent of the 2,100 emails reviewed were broadly in favour of the buyout.

After spending the last few months gathering evidence and speaking to relevant parties, the CMA is expected to release its final report on March 1 2023.

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