Ten US gamers have filed a lawsuit objecting to Microsoft’s proposed acquisition of Activision Blizzard.

They claim the $68 billion (£50 billion) takeover could lead to competition being crushed, choice limited and prices rising.

America’s Federal Trade Commission also hopes to block the takeover over concerns about the impact on competition.

According to the federal antitrust suit by the 10 gamers, which was filed in California, the proposed deal would give Xbox owner Microsoft “far-outsized market power in the video game industry with the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition”.

Eurogamer reported one of the legal firms representing the plaintiffs said:

“This case represents a necessary step in preserving competition in the video game industry and protecting the consumer benefits and innovations that competition brings.

“Nothing has been as destructive to the free enterprise system as the mega-mergers of the last two to three decades. They destroy jobs; they raise prices; they cause quality to diminish and innovation to be stifled.”

A spokesperson from Microsoft has denied the claims.

It says the Activision will instead “expand competition and create more opportunities for gamers and game developers”.

A total of 16 regulatory bodies have launched investigations into Microsoft’s proposed takeover to assess its impact on competition.

Activision Blizzard’s chief commercial officer has said that the company’s acquisition by Microsoft will only “benefit” gamers and the industry.