“An unrivaled position in the video game industry”: American gamers do not want the Activision Blizzard takeover and take action
Published on 21/12/2022 at 14:20
Two weeks after the complaint filed by the United States Federal Trade Commission to block its attempted acquisition of Activision-Blizzard, Microsoft has to face a new refusal: that of the players, this time, which also denounces the potential dominant position following this acquisition.
Summary
“The proposed acquisition would put Microsoft in an unrivaled position”Microsoft’s response
“The proposed acquisition would put Microsoft in an unrivaled position”
In the midst of an attempt to acquire Activision-Blizzard, Microsoft is also faced with certain American players opposing this acquisition. In the complaint filed in San Francisco according to Bloomberg, they fear that the merger will give Microsoft enough leverage at multiple levels of the video game industry. Understood, American players fear the upcoming dominance of the Redmond company and indicate that such a transaction could limit competition and therefore reduce consumer choice. Here is what is mentioned in the complaint:
Microsoft already controls one of the industry’s most popular and largest video game ecosystems. The proposed acquisition would give Microsoft an unrivaled position in the gaming industry, leaving it with the most must-have games and iconic franchises.
The complaint, launched by several video players across the country, therefore repeatedly mentions the fear of seeing Microsoft become an undisputed market leader. Moreover, it also suggests the concern of the complainants vis-à-vis the work. Indeed, the plaintiffs explain that workers with the “specialized talent” to create games would have reduced mobility and influence. Something particularly worrying given the situation according to them:
Activision Blizzard is currently engulfed in lawsuits filed by employees and the California Department of Fair Employment and Housing alleging it engaged in widespread gender discrimination and sexual harassment.
Microsoft’s response
In line with the comments of Phil Spencer (boss of Xbox) and Xbox more generally since the announcement of this acquisition, a Microsoft spokesperson wanted to respond quickly to this complaint in a statement made to Bloomberglaw :
This agreement will expand competition and create more opportunities for gamers and game developers as we seek to bring more games to more people.
In any case, here is a new complaint with which Microsoft will have to deal. Two weeks ago, the Federal Trade Commission opposed the takeover of Activision-Blizzard. This federal body, responsible for protecting consumers against unfair consumption techniques or non-respect of competition, filed a complaint with the Administrative Court with the aim of blocking the takeover. A stronger initiative than its European counterparts (such as the CMA in the United Kingdom or the European Commission) with a similar goal: to slow down the acquisition in order, probably, to have all the cards in hand before making a final judgment on this case.
