Call Of Duty Players Suing Microsoft For Opposing The Activision Merger

Ten gamers from California, New Jersey, and New Mexico have united to sue Microsoft around two weeks after the Federal Trade Commission filed a lawsuit to stop Microsoft's acquisition of Activision Blizzard. The gamers want to exert pressure on Microsoft in order to stop it from consummating "the largest tech merger ever in the video gaming business" and absorbing its main rival in the sector, which is similar to many of the FTC's worries. The plaintiffs identify Activision Blizzard as a significant rival that promotes industry-wide innovation and pricing competition in their lawsuit. The public would incur loss and damages if the acquisition is approved because, according to Microsoft, it would suddenly have more market power than it already does, giving it "the capacity to foreclose rivals, limit output, reduce customer choice, raise prices, and further hinder competition." Consumers can object to acquisitions like this under the Clayton Antitrust Act, which gives courts the opportunity to consider the anti-competitive harms argued by consumers. The gamers who are suing Microsoft for allegedly breaking antitrust laws are extremely concerned that the pricing of their favorite games may soon rise while the quality of those games may decline. They claim that if the purchase is approved, Microsoft would be in a position to monopolize the greatest talent and the most well-liked games in order to perhaps obtain "far-outsized market influence." According to a Microsoft official, the biggest worries of gamers are unfounded. As we work to offer more games to more people, this agreement will increase competition and open up new opportunities for players and game developers, a Microsoft representative told. The FTC, though, appears to side more with gamers, citing "Microsoft's record of acquiring and utilizing valuable gaming content to stifle competition from competing systems" in a news statement. Director of the FTC's Bureau of Competition Holly Vedova issued a warning in the news release, saying, "Microsoft has already demonstrated that it can and will withhold material from its gaming competitors."

Loyal players worry about a possible monopoly

The lawsuits offer a distinctive viewpoint to the discussion surrounding Microsoft's proposed acquisition of Activision, which Microsoft hopes to close in 2023. They claim in their case that because Microsoft is aware that gamers are unlikely to switch to other games in place of their favorites, they are especially susceptible to price increases. That implies Microsoft might stifle access to popular games—like Call of Duty games, which are played by all Plaintiffs—and services outside of Microsoft's gaming environment. Microsoft has previously made it known that it will make Call of Duty available for the next ten years on Sony and Nintendo platforms that compete with its own. Plaintiffs, however, claim that they have witnessed Microsoft offer comparable guarantees in the past, only to break their word once an acquisition is completed, as it did with Starfield after acquiring ZeniMax Media in 2020. Plaintiffs contend that just because Microsoft pledges to release a game on other gaming platforms or consoles, that doesn't guarantee that it will do so at the same time, with the same level of quality, or with the same features and improvements. Consider, the complaint asks, if Microsoft used well-known Activision games to strengthen its hegemonic position and drive rivals out of the developing cloud-based gaming sector—basically, suffocating competition in a market before it can really begin to bloom. The complaint claims that Microsoft may even "have the power and motive to engage in techniques to foreclose Sony" if it offers any exclusive benefits on hugely popular games that are exclusively available within its gaming environment. According to the lawsuit, the ongoing centralization of the gaming industry is one way that the quality of game material could decline. Microsoft might be able to recruit all the top game developers as a result of the agreement, thus depriving independent game companies of access to top devs. According to the lawsuit, in this scenario, the industry may experience lower pay, less mobility, and poorer working conditions—with Microsoft in a strong position to set norms for the sector. We were unable to immediately get in touch with attorneys for the gamers who are suing, but according to the complaint, plaintiffs believe that Activision Blizzard should continue to exist as a separate market entity, fostering competition among all major gaming companies as one of Microsoft's only significant competitors. [caption id="attachment_73204" align="aligncenter" width="2560"] FILE PHOTO: Microsoft logo[/caption] According to their complaint, "Activision Blizzard's competition in the industry must be safeguarded to ensure that the next generation of video game innovation and value are increased through competition, not strangled through consolidation." A US federal court has been petitioned by gamers who are suing Microsoft to rule that the company's purchase of Activision Blizzard breaches antitrust law. They are trying to ensure that the merger will be permanently halted, following in the footsteps of the FTC.