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The
complaint filed in federal court in California comes about two
weeks after the U.S. Federal Trade Commission filed a case with
an administrative law judge seeking to stop Microsoft, owner of
the Xbox console, from completing the largest-ever acquisition
in the video-gaming market.
The private lawsuit also seeks an order blocking Microsoft from
acquiring Activision. It was filed on behalf of 10 video game
players in California, New Mexico and New Jersey.
The proposed acquisition would give Microsoft "far-outsized
market power in the video game industry," the complaint alleged,
"with the ability to foreclose rivals, limit output, reduce
consumer choice, raise prices, and further inhibit competition."
A Microsoft representative on Tuesday defended the deal, saying
in a statement that it "will expand competition and create more
opportunities for gamers and game developers." After the FTC
sued, Microsoft President Brad Smith said, "We have complete
confidence in our case and welcome the opportunity to present
our case in court."
In a statement, plaintiffs' attorney Joseph Saveri in San
Francisco said, "As the video game industry continues to grow
and evolve, it's critical that we protect the market from
monopolistic mergers that will harm consumers in the long run."
Private plaintiffs can pursue antitrust claims in U.S. court,
even while a related U.S. agency case is pending. The takeover,
announced in January, also faces antitrust scrutiny in the
European Union.
The FTC previously said it sued to stop "Microsoft from gaining
control over a leading independent game studio." The agency said
the merger would harm competition among rival gaming platforms
from Nintendo Co Ltd and Sony Group Corp.
(Reporting by Mike Scarcella; editing by Leigh Jones, Cynthia
Osterman and Jonathan Oatis)
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