SAN FRANCISCO, Dec. 20, 2022 /PRNewswire/ -- Earlier this year, Microsoft announced plans to acquire Activision Blizzard, Inc., their significant competitor in the video game development, publishing, and distribution markets. The Joseph Saveri Law Firm, LLP, a leading antitrust firm with offices in California and New York, and the Alioto Law Firm are filing a lawsuit in the United States District Court for the Northern District of California on behalf of plaintiffs who would be adversely affected by reduced competition in the video game industry as a consequence of the Microsoft and Activision merger.
The lawsuit seeks injunctive relief to prohibit the acquisition as a violation of Section 7 of the Clayton Antitrust Act (15 U.S.C. § 18) and to protect consumers from unlawful concentration of power within the video game industry. Section 7 prohibits all mergers and acquisitions in which the effect "may be substantially to lessen competition, or to tend to create a monopoly."Suit filed to prevent Microsoft-Activision merger, which would adversely affect consumers through stifled competition.Upon the deal's completion, Activision would be wholly owned by Microsoft.
If allowed to proceed, this acquisition would stifle market competition, reducing consumer choice, lowering quality and output, increasing prices, and preventing future competition within the video game industry."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. I am grateful to the gaming consumers supporting this historic lawsuit," said Joseph Saveri of the Joseph Saveri Law Firm. He continued, "This case represents a necessary step in preserving competition in the video game industry and protecting the consumer benefits and innovations that competition brings.""Nothing has been as destructive to the free enterprise system as the mega-mergers of the last two to three decades.
They destroy jobs; they raise prices; they cause quality to diminish and innovation to be stifled. In this case, one of the largest companies in the world is trying to eliminate its significant rival in the game industry instead of competing," said Joseph Alioto of the Alioto Law Firm. He continued, "In addition, we will be attacking the proposed $3 billion dollar reverse-termination payment to Activision, if this acquisition is stopped, which it will be.
The $3 billion is hush money and it's a new effort in these cases to try and keep the acquired company silent."Roughly 68% of the U.S. population plays some form of video games. The lawsuit is the consequence of a growing industry-wide push for the concentration of power as the industry grows in popularity.
Through passage of the Clayton Act, Congress sought to encourage vigorous private litigation to stop unlawful mergers. Under Section 16 of the Clayton Act (15 U.S.C. § 26), Congress provided for a right of action by individuals to seek injunctive relief against unlawful mergers.
Private actions such as this were established as an integral part of the congressional plan for protecting competition. For more information, please see our case page. View original content:URL.htmlSOURCE Joseph Saveri Law Firm LLP