Following the FTC’s recent lawsuit against Microsoft and the pending acquisition of Activision Blizzard, a group of 10 consumers filed a new antitrust lawsuit against the Xbox maker in California. The new suit makes similar claims against Microsoft, namely that if the deal goes through, it will harm competition and innovation in the games space.
The group of consumers is filing their suit under section 7 of the 1914 Clayton Antitrust Act, which allows private individuals to “seek injunctive relief” in court if they believe a business deal could harm competition and, by extension, consumers other than themselves.
The plaintiffs paint Activision Blizzard as a rival that Microsoft will eliminate with the acquisition and suggests Xbox will continue to remove other rivals in some of the games industry’s budding sectors, including subscription services and cloud gaming – exactly as the FTC suit alleges.
The plaintiffs say the result would be lasting harm to competition, limitations to consumer choice, and increases in prices.
The U.S. Department of Justice says such cases from private plaintiffs are common before – and especially after – the government files its own lawsuits against a company. How much influence these private cases have varies, but in previous instances, including the U.S. government’s previous suit against Microsoft in 1998, they carry less weight than those filed by a government agency.
Written by Josh Broadwell on behalf of GLHF
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