Datel, who expressed disappointment over a recent Xbox 360 firmware upgrade that eliminated the ability to use its third-party memory cards with Microsoft’s console, has responded with a lawsuit.

The complaint, filed in the Northern District of California U.S. District Court, alleges that the October 2009 Xbox 360 update, and subsequent lock out of Datel products, was designed to “to exclude competition from the Xbox 360 aftermarket for controllers, and to force consumers to buy Microsoft's own controllers.”

Datel claims that Microsoft informed them that the lockout of Datel products was an “unintentional effect” of the software update, but notes that Microsoft told G4TV that, “Unauthorized MUs are not tested for compatibility or certified for safety and compliance standards and thus could damage -customer's Xbox 360 consoles.”

Datel also says that Microsoft has changed the 360’s authorization protocols and Security Integrated Circuit process to prevent all Datel accessories, even a currently unreleased 360 wireless controller, from working with the console, stating:

In fact, 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.

The lawsuit asks that Microsoft be adjudged to have violated federal anti-trust laws and that the Redmond, Washington company “be preliminarily and permanently enjoined and restrained from disabling or erecting technological barriers to Datel accessories and add-ons for the Xbox 360. Datel is also seeking damages and to have its attorney fees paid.

The full complaint can be viewed here (PDF).


|Via Seattle PI|

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