Microsoft Reaches Settlement in Antitrust Case Over Activision Blizzard Deal

Microsoft has resolved an antitrust lawsuit related to its purchase of Activision Blizzard. According to a report from The Hollywood Reporter, both parties informed the court on Monday that the case would be dismissed with prejudice, meaning it cannot be reopened. The terms of the settlement were not made public. In a court filing, lawyers agreed that each party would cover its own costs and fees. The lawsuit, initially filed by a private consumer in December 2022 due to antitrust concerns, was dismissed in March 2023 by a federal judge in San Francisco, who ruled that the complaint lacked sufficient allegations but allowed the plaintiffs 20 days to refile the case. The case was refiled in April 2023 with additional information, including internal documents and redacted sections related to Microsoft's ten-year agreements with Sony and Nintendo. Microsoft's acquisition of Activision Blizzard, announced in January 2022, was delayed due to regulatory issues in the UK, EU, and US before the deal was finalized in October 2023. Following the acquisition, the company experienced significant layoffs in its gaming division, prompting the Federal Trade Commission to claim that Microsoft's actions contradicted its stated intentions for the merger, particularly after laying off 1,900 employees at the start of the year. Microsoft responded by stating that Activision Blizzard had planned to make cuts regardless of the deal's outcome.