Microsoft loses bid to pause gamers' lawsuit over Activision deal
(Reuters) - A U.S. judge in California on Thursday turned down Microsoft Corp's bid to freeze a private consumer antitrust lawsuit over the company's $69 billion deal to acquire "Call of Duty" maker Activision Blizzard Inc while a related regulatory challenge to the deal plays out.
The ruling by U.S. District Judge Jacqueline Scott Corley in San Francisco comes after gamers opposed Microsoft's request to stay their case pending resolution of a Federal Trade Commission challenge in Washington, D.C.
The 10 plaintiffs argue, in claims similar to the FTC's, that the Activision deal would harm competition in the video game industry by reducing consumer choice and raising prices. The FTC has not asked a U.S. judge to enjoin the deal.
Corley said she will hear the gamers' bid on March 23 for a preliminary injunction to block Microsoft's proposed purchase of Activision.
Microsoft's leaders and attorneys for the company have called the deal beneficial to consumers. The proposal also faces antitrust scrutiny before the EU and UK.
"We remain confident in our case and path forward and are committed to closing the deal," a Microsoft spokesperson said on Thursday after the California court hearing.
Microsoft's lawyers at Wilkinson Stekloff and Alston & Bird had argued that allowing the private case to move ahead while the FTC dispute is ongoing could cause "needless and duplicative litigation and the risk of inconsistent rulings" on identical matters.
"Staying this case while the FTC litigation is ongoing would thus simplify the issues in this matter," Microsoft's attorneys told Corley.
The plaintiffs' attorneys, Joseph Saveri and Joseph Alioto, told the court that Microsoft previously had agreed to move the private case ahead even while the dispute at the FTC was pending. The gamers' lawyers also said they were not bound by the FTC proceeding.
Saveri told Reuters on Thursday that his team will focus on completing discovery.
Microsoft said in court on Thursday in California that it would not close the merger at least until March 31, according to Corley's order.
The plaintiffs' lawyers said there is no other private suit challenging the proposed deal.
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
Read more:
Video gamers fight Microsoft bid to block lawsuit over Activision deal
Microsoft faces EU antitrust warning over Activision deal - sources
Video gamers sue Microsoft in U.S. court to stop Activision takeover
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