Microsoft Corp on Monday won dismissal of a private consumer antitrust lawsuit over its $69 billion proposed purchase of "Call of Duty" maker Activision Blizzard Inc, but the plaintiffs were given 20 days to refine their legal challenge.
A federal judge in San Francisco ruled that the lawsuit from
a group of video game plaintiffs "lacks allegations" supporting their
claim that the proposed acquisition would harm market competition.
"Plaintiffs' general allegation that the merger may
cause 'higher prices, less innovation, less creativity, less consumer choice,
decreased output, and other potential anticompetitive effects' is
insufficient," wrote U.S. District Judge Jacqueline Corley. "Why?
How?"
The decision does not affect the U.S. Federal Trade
Commission's (FTC) regulatory challenge to the largest-ever gaming industry
deal. Microsoft announced its bid last year, and it also faces competition
scrutiny in the EU and UK. Microsoft has denied the deal would harm video game
competition.
U.S. antitrust law allows private consumers to challenge
mergers and acquisitions apart from government actions. An evidentiary hearing
before the FTC is scheduled in early August.
A spokesperson for Microsoft and lawyers for the company did
not immediately respond to messages seeking comment.
Joseph Saveri, a lawyer for the plaintiffs, told Reuters
they planned to submit an amended lawsuit "with additional factual
detail" to "address all of the ways in which the judge indicated we
need to allege more."
Corley scrapped a planned hearing on whether to issue a
preliminary injunction. A status hearing is scheduled for April 12.
The case is Demartini v. Microsoft Corp, U.S. District
Court, Northern District of California, 3:22-cv-08991.
For plaintiffs: Joseph Alioto of Alioto Law Firm; and Joseph
Saveri of Joseph Saveri Law Firm
The case is Demartini v. Microsoft Corp, U.S. District
Court, Northern District of California, 3:22-cv-08991.
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
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