Microsoft-Activision deal: Gamers sue to stop merger

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Xbox maker faces lawsuit from10 gamers who say the multibillion dollar merger will harm competition.

Microsoft faces legal action from 10 gamers to block its merger with Call of Duty maker Activision Blizzard.says the $69bn deal by the Xbox console maker to purchase its rival will "create a monopoly in the video game industry".The merger would be the largest tech deal ever in the video gaming market.

The proposed acquisition would give Microsoft "far-outsized market power in the video game industry," according to the complaint "with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition." Almost two weeks ago, the Federal Trade Commission raised similar concerns in their complaint. The US business watchdog said Activision was one of a small number of top video game developers that made high-quality games for multiple devices.

The proposed acquisition would give Microsoft "both the means and motive to harm competition" by manipulating pricing, making games worse on its competitors' video game consoles, "or withholding content from competitors entirely, resulting in harm to consumers," the agency said in aAfter the FTC filed its lawsuit, Microsoft president Brad Smith said the company had "complete confidence in our case and welcome the opportunity to present our case in court".

We continue to believe that our deal to acquire Activision Blizzard will expand competition and create more opportunities for gamers and game developers.

 

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