Microsoft wins dismissal of gamers lawsuit for over $69 billion with Activision

Microsoft won the dismissal of a private consumer antitrust lawsuit on Monday over its proposed $69 billion (roughly Rs 5,70,300 crore) purchase of Call of Duty maker Activision Blizzard, but plaintiffs have had 20 days to refine their legal challenge.

A federal judge in San Francisco has ruled that the lawsuit of a group of video game plaintiffs “lacks allegations” to support their claim that the proposed acquisition would harm competition in the marketplace.

“Plaintiffs’ general allegation that the merger may result in ‘higher prices, less innovation, less creativity, less consumer choice, lower production and other potential anti-competitive effects’ is insufficient “wrote U.S. District Judge Jacqueline Corley. “Why how?”

The ruling does not affect the U.S. Federal Trade Commission’s (FTC) regulatory challenge against the biggest deal ever in the gaming industry. Microsoft announced its offer last year and is also the subject of scrutiny of competition in the EU and the UK. Microsoft denied that the deal would hurt competition in video games.

US antitrust law allows private consumers to challenge mergers and acquisitions outside of government actions. An evidentiary hearing before the FTC is scheduled for early August.

A Microsoft spokesperson and company attorneys did not immediately respond to messages seeking comment.

Joseph Saveri, a lawyer for the plaintiffs, told Reuters they planned to file an amended complaint “with additional factual detail” to “address all the ways the judge indicated we needed to allege more.”

Corley canceled a scheduled hearing on whether to issue a preliminary injunction. A status hearing is scheduled for April 12.

The case is Demartini v. Microsoft Corp, US District Court, Northern District of California, 3:22-cv-08991.

For the plaintiffs: Joseph Alioto of the Alioto law firm; and Joseph Saveri of the law firm Joseph Saveri

For Microsoft: Rakesh Kilaru of Wilkinson Stekloff and Valarie Williams of Alston & Bird

© Thomson Reuters 2023

---