Microsoft settles antitrust lawsuit over Activision Blizzard merger

In 2022, when Microsoft first announced plans to acquire mega-publisher, Activision Blizzard, a lawsuit was filed in California, attempting to argue that the merger would create a monopoly. This lawsuit, levied on behalf of consumers, rather than a government agency like the EC, FTC or CMA, has now been dropped. 

The news comes from an unlikely but reliable source. The Hollywood Reporter typically focuses on, well, Hollywood, and as a result, it is often combing through court records in the state of California. That is how the most recent update to this case was spotted. The lawsuit had been assigned to US District Judge, Jacqueline Scott Corley, who also oversaw the FTC's case for an injunction against Microsoft's acquisition of Activision Blizzard.

During the injunction case with the FTC against Microsoft, Corley ruled that the FTC had failed to make a strong case for stopping the acquisition. Unsurprisingly, this private anti-trust lawsuit was dismissed back in March over similar findings. However, the group had amended its complaint since then, adding in additional information from Microsoft and Sony Interactive Entertainment to support its argument.

Due to the amendment, Microsoft has opted to settle the case out of court. The exact terms are not publicly known, but both parties have since petitioned the court to dismiss the case with prejudice, confirming that an agreement has been made.

KitGuru Says: This lawsuit was unlikely to result in any extreme outcome. Still, the FTC has continued to pursue its case against Microsoft in hopes of reversing the merger. A final decision on that has not yet been made. 

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