Microsoft’s acquisition of Activision Blizzard is facing new legal challenges. In April 2023, a group of video gamers filed a new lawsuit against Microsoft, alleging that the acquisition would harm competition in the video game industry. The lawsuit, which was filed in a US federal court, claims that Microsoft would use its control over Activision Blizzard to stifle competition by making games exclusive to its Xbox consoles and cloud gaming service.
In addition to the lawsuit filed by the video gamers, the acquisition is also being investigated by regulators in the United States, the United Kingdom, and the European Union. These regulators are concerned that the acquisition would give Microsoft too much control over the video game industry, which could lead to higher prices and less innovation.
It is still too early to say whether the acquisition will be approved by regulators. However, the new legal challenges could make it more difficult for Microsoft to complete the deal.
Here are some of the reasons why the acquisition is facing legal challenges:
- Concerns about competition: Regulators are concerned that the acquisition would give Microsoft too much control over the video game industry. Activision Blizzard is one of the largest video game publishers in the world, and its games are popular on a variety of platforms. If Microsoft were to acquire Activision Blizzard, it would become a major player in the mobile, PC, and console gaming markets. This could lead to higher prices and less innovation, as Microsoft would have less incentive to compete with itself.
- Concerns about workplace culture: Activision Blizzard has been facing allegations of sexual harassment and discrimination in the workplace. These allegations have led to lawsuits and investigations by regulators. Microsoft has said that it is committed to addressing these issues, but regulators are concerned that the acquisition could make it more difficult to do so.
- Concerns about privacy: Activision Blizzard collects a lot of data about its players. This data could be used by Microsoft to track and target players with advertising. Regulators are concerned about the privacy implications of this data collection.
It is important to note that these are just some of the reasons why the acquisition is facing legal challenges. The final outcome of the deal is still uncertain.