Microsoft settles lawsuit with players fighting against Activision Blizzard acquisition

Microsoft settles lawsuit with players fighting against Activision Blizzard acquisition

by Danny Craig · 10/15/24, 1:45 PM
Microsoft settles lawsuit with players fighting against Activision Blizzard acquisition
Activision

Microsoft has settled a lawsuit filed against it in 2022, alleging that its acquisition of publisher Activision Blizzard would create a gaming monopoly.

The details:

  • In December 2022, ten players filed an anti-trust lawsuit against Microsoft, claiming that the then-incomplete $69 billion acquisition of Activision Blizzard would cause the gaming industry to "lose substantial competition." According to the lawsuit, the plaintiffs believed that the acquisition would give Microsoft the "ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition."

  • The lawsuit was initially dismissed in March 2024 due to a lack of evidence, but the group was given the opportunity to file an amended complaint that included a strategy memo from Microsoft and information from Sony less than 20 days later.

  • Despite the lawsuit, the deal went ahead in October 2023, and The Hollywood Reporter has now confirmed that it has been settled. According to the report, both parties have agreed to dismiss the complaint "with prejudice," which prevents it from being refiled. The full terms of the agreement have not been made public, but lawyers have agreed that "each party shall bear their own costs and fees."

  • Many players and rival companies immediately opposed the proposed acquisition, citing concerns that Microsoft would gain control of franchises such as Call of Duty, Overwatch, and Diablo, therefore being able to make them exclusive to Xbox. In order to appease regulators, the company signed agreements with Nintendo and Sony to ensure that COD remained on their respective platforms, but the Federal Trade Commission still sued to block the agreement, which was later denied by the courts.

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