Microsoft, Activision Blizzard deal facing new hurdle as gamers sue to stop merger

Microsoft Corporation is trying to acquire Activision Blizzard video game company but the deal hit another roadblock after it was revealed that gamers have marched to a US court to file a lawsuit with the aim of stopping the merger.

On Tuesday this week, a private consumer sued in an effort to prevent Microsoft from taking over Activision Blizzard. The gamers claimed that the Washington-headquartered tech firm’s bid to buy the “Call of Duty” creator would unlawfully stamp down the competition in the video gaming business.

According to Reuters, the complaint filed the lawsuit at a federal court in California, and this comes just two weeks after the U.S. Federal Trade Commission (FTC) filed a similar case with the aim of breaking the acquisition deal as well. In this suit, an administrative law judge is seeking to block the Xbox console maker from completing the merger that has been said to be the largest ever in the video gaming market since the deal is worth $69 billion.

In any case, the latest proceeding is looking to impose an order that will stop Microsoft from buying Activision. It was filed by about 10 video game players in New Jersey, California, and New Mexico.

In their complaint, they said the merger would give the tech firm a “far-outsized market power in the video game industry.” They added that if the deal is successful, it will have the “ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition.”

The lawyer of the gamers, Joseph Saveri, said in a statement that “As the video game industry continues to grow and evolve, it is critical that we protect the market from monopolistic mergers that will harm consumers in the long run.”

Meanwhile, Microsoft’s representative could not be reached for comment after the gamers filed the lawsuit. It was noted that private plaintiffs could go after antitrust claims in the U.S. even while a government agency has a pending case related to it. Microsoft and Activision Blizzard first announced the takeover deal earlier this year, and many antitrust bodies have tried to stop it since then.

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