Swedish Business Sues Microsoft & Activision for Conspiring in Monopolistic Deal
A Swedish business has initiated legal action against Microsoft and Activision Blizzard, alleging them of engaging in unethical collusion to secure the business transaction. This 205-page complaint was made accessible on November 10, filed by Sjunde AP-Fonden, and first reported by Bloomberg Law. The complaint concentrates more so on how the deal originated and the conditions surrounding CEO Bobby Kotick after Activision Blizzard’s many sexual misconduct scandals before the announcement.
In essence, according to Bloomberg Law, Sjunde AP-Fonden claims that the Microsoft and Activision Blizzard deal was “rigged to exploit the beleaguered gaming giant’s sexual harassment crisis and protect its CEO.” The lawsuit goes on to name each current and former member of the Activision Blizzard board of directors and claims that the $69 billion price tag was manipulated to allow for an undervalued deal between the two and keep Kotick in his position, at least through the regulatory review.
Microsoft knowingly exploited the harassment scandal and its commercial leverage over Activision precisely to offer Kotick a way to save his own skin
It conspired with Kotick and the board to help them evade the personal and professional consequences of that scandal.”
-Lawsuit
Activision’s spokesperson Joe Christinat supported the deal stating:
This is a great deal for shareholders
We garnered 98% approval of votes cast. The board went through a thorough process to decide the right move for employees, shareholders, and players.”
Both the outcome of this lawsuit and the Microsoft-Activision Blizzard merger is up in the air. These are undoubtedly significant claims that should not be ignored as everyone considers the consequences for organizations other than Microsoft. Microsoft would overtake Tencent and Sony to become the biggest gaming firm in the Americas and the third-largest gaming company overall if the transaction is approved.
