Microsoft has avoided a potential legal obstacle to its $69 billion acquisition deal for video game company Activision Blizzard, the creator of the game "Call of Duty." In December, plaintiffs filed a lawsuit against Microsoft in a federal court in California to block the deal, alleging it would harm competition. Judge Jacqueline Scott Corley ruled in San Francisco federal court late Friday that "video game users have not shown that they will suffer irreparable harm if the acquisition process is allowed to continue."
Microsoft and its attorneys argue that the acquisition will benefit consumers. Corley dismissed video game users' claims that Microsoft would limit the availability of the game, stating that "there is no evidence that the company will cease current releases of 'Call of Duty' after the proposed acquisition." Corley wrote, "The day after the acquisition, they can play in the same way they did with their friends before the acquisition." She added that it is "unlikely" that Microsoft would make any newer version of "Call of Duty" exclusive to its platform.
Joseph Alioto, the attorney for the video game users, stated on Monday that they would continue to challenge the deal despite their preliminary defeat. The court order comes just days after Microsoft received approval for the deal from European antitrust regulators. The deal is also undergoing scrutiny from the U.S. Federal Trade Commission, as well as in China and South Korea. The British authorities responsible for competition protection rejected the deal, which would be the largest-ever in the gaming industry. The deadline for Microsoft to appeal the decision is May 24. U.S. antitrust law allows private plaintiffs to file lawsuits against mergers and acquisitions.
