Court OK's Datel antitrust case against Microsoft

Judge tosses Xbox 360 maker's motions to dismiss case, clearing the way for lawsuit filed by third-party memory unit company to proceed.

98 Comments

In November, Datel filed an antitrust lawsuit in a San Francisco federal court against Microsoft after the fall Xbox Live Update locked out third-party memory units. In one fell swoop, the move eliminated a large chunk of the UK-based peripheral maker's business, as it sold Xbox 360 Memory Units with higher capacities--at lower prices--than those made by Microsoft.

Datel's 2GB and 4GB memory cards were locked out by Xbox Live's latest update.
Datel's 2GB and 4GB memory cards were locked out by Xbox Live's latest update.

Microsoft's legal team filed several motions asking federal Judge Elizabeth Laporte to throw out the case, which accuses the Xbox maker of violating antitrust laws by requiring 360 owners to buy only first-party accessories. Late Friday, Laporte dismissed three of Microsoft's four motions, with Datel having the chance to amend the accepted motion. Her decision clears the way for Datel's suit to proceed, and the two parties will meet next month to prepare for a June 2 hearing.

Datel's victory as a plaintiff comes as it is the defendant in another lawsuit brought by none other than Microsoft. Earlier this month, Reuters reported that Microsoft is suing Datel over its "TurboFire" and "WildFire" wireless controllers, which the software giant claims infringe on patents related to the Xbox 360 controller.

Got a news tip or want to contact us directly? Email news@gamespot.com

Join the conversation
There are 98 comments about this story