Microsoft Settles Antitrust Lawsuit Filed By Gamers Over Activision Blizzard Acquisition

Microsoft Corp. MSFT settled an antitrust lawsuit filed by a group of gamers opposing its $69 billion acquisition of Activision Blizzard.

This 2022 lawsuit raised concerns about the potential monopolistic consequences of the merger on the video game industry.

The case, which was dismissed with prejudice, cannot be refiled, according to The Wrap. Although the settlement details remain undisclosed, both parties agreed to bear their own costs and fees.

See Also: Microsoft To Test Cloud Gaming For Owned Xbox Games In November: Report

Antitrust Lawsuit Origins

A group of gamers from multiple U.S. states initiated the lawsuit. They express apprehension about Microsoft gaining control over blockbuster franchises like Call of Duty, World of Warcraft, and Candy Crush.

They feared the acquisition could result in higher prices, game cancellations, and Xbox versions of games being prioritized, leading to potential market domination.

The Federal Trade Commission (FTC) was similarly opposed to the deal, attempting to block it; however, those efforts ultimately fell short, allowing Microsoft to finalize the purchase in 2023.

Game Pass And Price Hikes Post-Acquisition

Since Microsoft successfully acquired Activision Blizzard, its subscription service, Xbox Game Pass, has undergone significant changes. While Activision Blizzard's titles, such as Call of Duty, are slowly being integrated into Game Pass, there have been considerable shifts in the structure and pricing of the service.

The new Game Pass tiers have left some fans frustrated, as day-one releases like Call of Duty: Black Ops 6 are now restricted to the more expensive Game Pass Ultimate or PC Game Pass subscriptions. In contrast, the basic Game Pass tier, which no longer includes day-one releases, has been labeled a “degraded product” by the FTC.

Microsoft's decision to raise the price of Game Pass has also drawn criticism. In July, Xbox Game Pass Ultimate increased from $16.99 to $19.99 per month, which analysts described as inevitable.

Observers say Microsoft will introduce ads as part of Xbox's long-term strategy to recover its $69 billion investment. These price hikes sparked a reaction from the FTC, which accused Microsoft of “exercising market power post-merger.”

In response to the FTC's allegations, Microsoft defended its actions, claiming the FTC was misrepresenting the facts. The company insisted that the Game Pass Standard tier wasn't “degraded” and that it still includes multiplayer functionality.

Microsoft also responded to concerns about the staff layoffs that followed the acquisition. The Redmond, Washington-based company cut 2,550 jobs from its gaming division.

The FTC had previously accused Microsoft of contradicting its intentions to allow Activision Blizzard to operate as a “limited-integration studio,” given that many of the layoffs affected Activision's staff.

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