[STEAM] Microsoft Settles Gamers’ Antitrust Lawsuit Over $69 Billion Activision Blizzard Acquisition

[Steam 0]

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has settled the antitrust lawsuit filed on behalf of a group of gamers who objected to the company’s $69 billion acquisition of Activision Blizzard.

As reported by

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, details of the settlement were undisclosed, but we do know the lawsuit was dismissed with prejudice, which means it cannot be filed again. Lawyers agreed that "each party shall bear their own costs and fees."

The lawsuit was filed back in 2022 in California by a group of gamers from across multiple states who expressed concern about the potential negative impact of a

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monopoly in the video game space sparked by absorbing the makers of Call of Duty, World of Warcraft, and Candy Crush, among many other games. It came soon after the Federal Trade Commission (FTC) began its work to block the deal from closing, work that ultimately *******.

The lawsuit had claimed that if

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were to acquire Activision Blizzard, it could lead to the company prioritizing Xbox versions of multiplatform games, prices going up, or the cancelation of certain games. There was specific concern about the potential impact on Game Pass subscribers should the buyout go through.

Since

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successfully acquired Activision Blizzard in 2023, Game Pass has changed significantly. It’s slowly added Activision Blizzard games to the subscription service (

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), but it’s also restructured Game Pass itself.

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, and big-ticket games such as Diablo 4, Starfield, and Call of Duty are reserved for the more expensive Game Pass Ultimate or PC Game Pass subscriptions. Meanwhile,

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, most recently in July when Xbox Game Pass Ultimate increased from $16.99 to $19.99 per month.

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by analysts speaking with IGN, with some predicting that Game Pass will eventually see the introduction of ads. The changes are said to be part of a push by Xbox to recoup some of its $69 billion investment in Activision Blizzard.

In response,

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and labeled the new Xbox Game Pass Standard tier a "degraded product." The FTC claimed

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was "exercising market power post-merger" of Activision Blizzard with its controversial changes to Game Pass.

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responded to the FTC's filing about Xbox Game Pass price increases, calling the FTC’s complaint a "misleading, extra-record account of the facts." It insisted the FTC was wrong to call Game Pass Standard a “degraded” version because it includes multiplayer.

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, with multiple studios falling by the wayside. In February, the FTC claimed

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contradicted its intentions during its acquisition of Activision Blizzard

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.

FTC lawyer Imad Abyad argued that

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said it wanted Activision to "operate as a limited-integration studio." But because Activision staff were among those affected by the layoffs, Abyad claimed this contradicted

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’s prior claim.

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responded to insist Activision Blizzard had already planned mass layoffs regardless of whether the acquisition was completed.

“As time passes,

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continues to increase its market power, prices have increased, games continue to be canceled, development capacities continue to diminish, and Game Pass continues to trend towards a monopoly,” attorney Joseph Saveri said in a court filing.

Wesley is the *** News Editor for IGN. Find him on

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at @wyp100. You can reach Wesley at [email protected] or confidentially at *****@*****.tld.

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