Microsoft reaches resolution in antitrust lawsuit concerning its acquisition of Activision Blizzard

The antitrust dispute concerning Microsoft's acquisition of Activision Blizzard has been resolved. According to The Hollywood Reporter, both parties informed the court of the case's settlement on Monday, noting it was dismissed "with prejudice," indicating it cannot be brought back to court.

The specifics of the settlement remain undisclosed, but a court document confirmed that "each party shall bear their own costs and fees." Initially filed as a private consumer lawsuit in December 2022 on antitrust grounds, the case was thrown out in March 2023 by a federal judge in San Francisco due to insufficient allegations. However, plaintiffs were allowed a 20-day window to amend their claim.

The lawsuit was refiled in April 2023 with more details, including confidential clauses and altered sections regarding ten-year contracts Microsoft had established with Sony and Nintendo.

Microsoft's announcement of the Activision Blizzard acquisition came in January 2022, but regulatory hurdles in the UK, EU, and US delayed its completion. Ultimately, the transaction was finalized in October 2023.

In the aftermath of the merger, the company experienced significant layoffs affecting its gaming segment. The Federal Trade Commission accused Microsoft of going against the merger's objectives when it terminated 1,900 positions earlier in the year. Microsoft countered by saying that Activision Blizzard intended to implement those layoffs regardless of the acquisition's outcome.