Following the release of an Xbox 360 update that disables all third party memory units, Datel Design & Development has filed an antitrust suit against Microsoft seeking an injunction to prevent “disabling or erecting technological barriers to Datel accessories” in the Xbox 360 and future consoles as well as unspecified monetary damages.
The lock-out of third party memory units was first disclosed by Microsoft’s Major Nelson back in October and was met with overwhelming disappointment. Microsoft’s official line regarding the lock-out was that third party memory devices have the “primary purpose” of facilitating cheating on the Xbox Live service, a problem that Microsoft seeks to eliminate. However, Datel argues that “Microsoft’s purpose in disabling Datel’s memory cards is to prevent consumers from choosing a Datel product that offers far better value for the price.” The firmware update also purportedly disables a wireless controller developed by Datel but not yet on the market. Datel alleges that it is “Microsoft’s anticompetitive conduct, including tying and predatory design, such as the erection of technological barriers to third party accessories and the disabling of otherwise functional third party accessories, not consumer loyalty or esteem, that primarily drives Microsoft’s accessories attach rate.”
Microsoft has yet to comment on the impending litigation.
A full copy of the complaint filed in the U.S. District Court for the Northern District of California can be found here, courtesy of TechFlash.
LoP commentary and Microsoft’s official response still to come.
