When Microsoft unveiled its intentions to acquire Activision Blizzard in 2022, it ignited a series of legal challenges, including a high-profile dispute with the FTC aimed at halting the transaction. Microsoft emerged victorious in that particular case, and now, another legal battle related to the merger has been resolved.
According to the Associated Press, Microsoft has reached a settlement with a coalition of gamers who had filed a lawsuit arguing that the acquisition would be detrimental to the video game industry. The specifics of the settlement remain undisclosed, but both parties agreed to dismiss the case 'with prejudice,' meaning it cannot be refiled. Additionally, the agreement stipulates that each side will cover its own legal expenses. The lawsuit was initially filed in a U.S. federal court in 2022.
However, this may not be the final legal skirmish stemming from the Activision deal. Earlier this year, the FTC submitted a new brief to the federal court, alleging that Microsoft's modifications to Game Pass violated the commitments made to secure federal approval for the Activision Blizzard acquisition. Microsoft subsequently responded to the FTC, challenging its characterization of Game Pass as a 'degraded product.' The U.S. federal court has yet to issue a ruling on either party's brief. For the time being, the situation remains unchanged.
