- Summary
- Law firms
- Tech company says freeze needed to avoid duplication
- In private consumer case, video gamers challenge $69 bln deal
(Reuters) - Microsoft Corp on Wednesday asked a U.S. judge in California to pause a private antitrust lawsuit over the company's $69 billion bid to buy "Call of Duty" maker Activision Blizzard Inc while a related U.S. regulatory action challenging the deal moves ahead.
Lawyers for Microsoft argued in a filing in San Francisco federal district court that freezing the private consumers' case would "avoid needless and duplicative litigation and the risk of inconsistent rulings on identical issues."
The consumer lawsuit on behalf of 10 video game players alleging Microsoft's purchase of Activision would reduce competition in the video game industry came about two weeks after the U.S. Federal Trade Commission filed its own case at the agency.
"There is accordingly no reason to litigate this case right now. Microsoft is already litigating the issues presented here in front of the FTC," Microsoft's lawyers at Wilkinson Stekloff and Alston & Bird told U.S. District Judge Jacqueline Corley.
The private case seeks a preliminary injunction blocking the purchase. The FTC has not yet filed any lawsuit in federal court. Its case is moving ahead in an administrative forum at the agency, where a judge has the power to enjoin the proposed tie-up. A hearing is scheduled for August.
Microsoft and its lawyers have defended the bid to buy Activision, saying the purchase would provide consumers "high-quality content in more ways and at lower prices." The deal also faces competition scrutiny in the EU and United Kingdom.
Lawyers for Microsoft in the California case did not immediately respond to a request for comment on Thursday.
A Microsoft spokesperson in a statement said "since the claims raised in the private case are already being litigated by the FTC, it makes sense to pause this private litigation."
Plaintiffs' attorney Joseph Saveri told Reuters that "Microsoft hasn't provided any sound basis for stopping our case" and that any halt to the litigation would run counter to what he said was a negotiated schedule letting the dispute move forward.
The FTC declined to comment.
In December, the agency said it sued to stop "Microsoft from gaining control over a leading independent game studio." The proposed merger would harm competition among rival gaming platforms from Nintendo Co Ltd and Sony Group Corp, the FTC said.
Microsoft said in Wednesday's filing in the private consumers' case that it and Activision have cooperated with the FTC and international counterparts to obtain regulatory approval for the deal.
Attorneys for Microsoft argued "there is no risk of harm in staying plaintiffs' case while those regulatory proceedings are ongoing."
The transaction agreement has a termination date of July 18.
The case is Demartini et al v. Microsoft Corp, U.S. District Court, Northern District of California, 3:22-cv-08991-JSC.
For plaintiffs: Joseph Alioto of Alioto Law Firm and Joseph Saveri of Joseph Saveri Law Firm
For Microsoft: Rakesh Kilaru of Wilkinson Stekloff and Valarie Williams of Alston & Bird
Read more:
Microsoft tells judges its $69 bln Activision deal would benefit gamers
Video gamers sue Microsoft in U.S. court to stop Activision takeover
Biden faces uphill battle in spat with Microsoft over Activision deal
(NOTE: This report was updated to include comments from a lawyer for the plaintiffs in the private consumer lawsuit.)
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