San Francisco

In yet another roadblock for Microsoft's planned acquisition of Activision Blizzard Inc., a group of video gamers challenged the acquisition in a federal antitrust lawsuit in a San Francisco court. The petitioners say that Microsoft's acquisition of Call of Duty-maker will unlawfully squeeze the competition in the video game industry. 

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WATCH | World Business Watch | FTC seeks to block Microsoft-Activision deal

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The lawsuit, which comes less than two weeks after the acquisition was blocked by Federal Trade Commission (FTC), was reportedly filed on behalf of 10 video game players in California, New Mexico and New Jersey.

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Microsoft-Activision deal: What is the worry of gamers?

The gamers' suit claims that the merger violates Clayton Antitrust Act -- a law that seeks to prevent anticompetitive practices in the market -- by reducing competition in the gaming sector and by extension harming the public. 

The gamers have sought a court order prohibiting the companies from consummating the merger, nullifying the break-up fee and paying their legal costs.

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Microsoft-Activision deal: What is the FTC saying?

The FTC has also sought to stop Microsoft from gaining control over a 'leading independent game studio'. 

ALSO READ | US competition watchdog seeks to stop Microsoft-Activision mega gaming deal

"Microsoft has already shown that it can and will withhold content from its gaming rivals," Holly Vedova, Director of the FTC’s Bureau of Competition said in an official statement. "We seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming market."

What is Microsoft's stance at present?

Microsoft has defended the deal, saying in a statement that it "will expand competition and create more opportunities for gamers and game developers." 

Following the FTC lawsuit, Microsoft President Brad Smith said, "We have complete confidence in our case and welcome the opportunity to present our case in court."

The takeover, announced in January, also faces antitrust scrutiny in the European Union.

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