Microsoft Corp (MSFT.O) won a rejection of a private consumer antitrust case over its $69 billion proposed purchase of “Call of Duty” creator Activision Blizzard Inc (ATVI.O) on Monday. Still, the plaintiffs were granted 20 days to revise their legal argument.
A San Francisco federal court concluded that the video game plaintiffs’ case “lacks claims” that the planned merger will impair market competition.
“Plaintiffs’ generic charge that the merger may create ‘higher pricing, fewer innovation, less creativity, less consumer choice, diminished production, and other potential anticompetitive impacts’ is inadequate,” concluded U.S. District Judge Jacqueline Corley. “Why? How?”
The FTC’s regulatory challenge against the biggest gambling sector merger is unaffected by the judgment. Microsoft unveiled its offer last year and faced E.U. and U.K. competition investigations. Microsoft denies the agreement will hurt video game competition.
Consumers can dispute mergers and acquisitions without government intervention under U.S. antitrust law. However, early August brings an FTC evidentiary hearing.
Microsoft’s lawyers and spokeswoman didn’t reply to queries.
Plaintiffs’ lawyer Joseph Saveri told Reuters they will file an updated case “with extra factual information” to “address all of the aspects in which the judge suggested we need to claim more.”
Corley canceled a preliminary injunction hearing. The status hearing is on April 12.
Demartini v. Microsoft Corp., 3:22-cv-08991.
Plaintiffs: Joseph Alioto and Joseph Saveri.
Microsoft: Wilkinson Stekloff’s Rakesh Kilaru and Alston & Bird’s Valarie Williams.
Comment Template