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Microsoft Settles Gamers’ Lawsuit Over Activision Blizzard Acquisition

Microsoft and 10 gamers settled their lawsuit over the Activision Blizzard acquisition in October 2024. The settlement terms were not disclosed.
From TheFinanceBase Team2 min to read
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Microsoft and 10 video-game consumers settled their lawsuit over Microsoft’s acquisition of Activision Blizzard in October 2024. The settlement terms were not disclosed in the reporting, so there is no confirmed public payment amount. The case ended after a judge had dismissed the gamers’ original complaint at the pleading stage, while allowing them to amend it.

What was the lawsuit about?

The gamers filed suit in December 2022 in the U.S. District Court for the Northern District of California, seeking to block Microsoft’s proposed acquisition under Sections 7 and 16 of the Clayton Act. Some plaintiffs said they were fans of Call of Duty, World of Warcraft, Overwatch and Diablo. They alleged the deal could weaken competition and harm consumers, including through reduced choice or higher prices. Those claims were allegations, not court findings.

The Associated Press reported the acquisition’s value as $69 billion and said it took nearly 22 months to close. Those figures describe the deal, not the settlement.

What were the settlement terms?

Public reporting by the Associated Press and Bloomberg Law said the parties had resolved the litigation, but did not disclose the settlement terms. The Associated Press reported that each side would pay its own costs and fees. Bloomberg Law described the parties’ filing as seeking dismissal with prejudice. No settlement payment amount was reported, so it is not established that Microsoft paid the gamers.

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What did the judge decide before the settlement?

On March 20, 2023, Judge Jacqueline Scott Corley granted Microsoft’s motion to dismiss the original complaint but gave the plaintiffs leave to amend. The court said: “The Complaint does not plausibly allege the merger creates a reasonable probability of anticompetitive effects in any relevant market.” That was a decision about whether the complaint adequately alleged likely anticompetitive effects—not a trial determination that the acquisition was harmless or unlawful.

The order discussed the plaintiffs’ theories about horizontal competition and the possibility that Microsoft could make Activision games exclusive to its platforms. It found that the original complaint lacked factual allegations supporting the claimed probability of anticompetitive effects. The court’s order also recounted a plaintiffs’ allegation about Game Pass market share; that allegation should not be treated as an independently verified market statistic.

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Does the settlement mean the court found the acquisition anticompetitive?

No. The October 2024 settlement ended the private lawsuit; it did not decide whether the acquisition violated antitrust law. The March 2023 order addressed the sufficiency of the original complaint at the pleading stage. A settlement is not a judicial finding that the allegations were true or false.

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