Summary
Microsoftand a group of concerned gamers have just settled a big antitrust lawsuit brought on by its buyout of Activision Blizzard. The acquisition of Activision Blizzard has been one of the biggest gaming news stories to unfold over the past few years, as it has allowed Microsoft to bring major franchises likeCall of Duty,World of Warcraft, andCrash Bandicootinto the Xbox umbrella. This industry-shaking buyout was finalized in October 2023, withMicrosoftultimately paying $75.4 billion for Activision Blizzard and all of its related assets.
Microsoft’s purchase of Activision Blizzard drew concern and controversy from a variety of parties, with groups like the UK’s Competition and Markets Authority andthe US Federal Trade Commissionchallenging the deal due to worries of antitrust violations. One such lawsuit was filed in California by a group of players from multiple states that stressed how the Activision Blizzard buyout could create a monopoly and weaken competition between Microsoft and other video game companies. Microsoft has argued that this wouldn’t be the case, citing how previously-acquired Bethesda titles likeFallout 76continue to receive updates on non-Xbox systems following its buyout of ZeniMax in 2021.
Now Microsoft and 10 players residing in California, New Mexico, and New Jersey have settled thisActivision Blizzard-related antitrust lawsuit, as noted inThe Hollywood Reporter. The involved parties gathered in court on Monday, October 14 to verify a deal to dismiss this lawsuit “with prejudice.” This means that the case can never be refiled, effectively closing the book on Microsoft’s legal battle with these gamers. Terms of the agreement that led to this settlement haven’t been disclosed as of this writing.
Microsoft and Players Settle Activision Blizzard-Related Antitrust Lawsuit
Before this settlement resolved the case for good, theantitrust lawsuit was initially dismissedin March after US District Judge Jacqueline Scott Corley determined that the player group failed to present adequate evidence to support their claims of Microsoft gaining a monopoly on the gaming industry should it complete its buyout of Activision Blizzard. However, the plaintiffs were granted 20 days to refine their challenge and file an adjusted lawsuit featuring redacted memos from Microsoft and new information from its primary gaming competitor, Sony.
At the time this amended lawsuit was filed, Microsoft countered its claims thatthe Activision Blizzard buyoutand the increasing prevalence of Xbox Game Pass would lead to a monopoly by stating that such arguments were based on “outdated Supreme Court cases” and that the acquisition would instead “bring more games to more people.” Microsoft eventually completed its purchase ofActivision Blizzardin late 2023, though the FTC would once again challenge the gaming conglomerate following a round of layoffs earlier this year.
