Microsoft wins dismissal of gamers’ suit over $69 billion Activision deal

Finally, Microsoft won the dismissal of a private consumer antitrust lawsuit over its $69 billion proposed deal with “Call of Duty” maker Activision Blizzard. However, the plaintiffs have 20 days to refine their legal challenge. A federal judge in San Francisco ruled that the lawsuit from a group of video game plaintiffs “lacks allegations” supporting their claim that the proposed acquisition would harm market competition.

Microsoft wins dismissal of gamers’ suit over $69 billion Activision deal

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“Plaintiffs’ general allegation that the merger may cause ‘higher prices, less innovation, less creativity, less consumer choice, decreased output, and other potential anticompetitive effects’ is insufficient,” wrote U.S. District Judge Jacqueline Corley. “Why? How?”

However, the decision does not affect the U.S. Federal Trade Commission’s (FTC) regulatory challenge to the largest-ever gaming industry deal. Soon after Microsoft announced the deal it started facing competition scrutiny in the EU and UK. Microsoft, on the other hand, has denied the deal would harm video game competition.

U.S. antitrust law allows private consumers to challenge mergers and acquisitions apart from government actions. A spokesperson for Microsoft and lawyers for the company did not immediately respond to messages seeking comment. A status hearing is scheduled for April 12.

Joseph Saveri, a lawyer for the complainants, said that they planned to submit an amended lawsuit “with additional factual detail” to “address all of the ways in which the judge indicated we need to allege more.”

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