Microsoft and eBay have been in a protracted battle over a lawsuit that pits the online retail giant against an online gaming service that makes an old navy sweatshirt.
The battle centers on whether the Old Navy company’s Old Navy Sweatshirt Collection violates the terms of its agreement with eBay.
The lawsuit alleges that eBay violated the terms by selling the sweatshirt for $99.99 without an auction.
That’s more than a third of its retail price.
eBay declined to comment on the suit.
Microsoft has denied the allegations in court filings, which were filed on Friday in California.
The company is suing the New York-based company for $10 million for breach of contract and other alleged violations of the Digital Millennium Copyright Act, which Microsoft is seeking to invalidate.
“We’re disappointed in this decision, and will continue to vigorously defend ourselves against these claims,” a Microsoft spokesperson said in a statement.
“The company believes that it is entitled to a fair and equal outcome under the law, and we believe it will prevail in court.”
The case, filed in the Southern District of California, is part of a broader legal battle between Microsoft and other online retailers.
Microsoft is also seeking a restraining order against eBay, alleging that the auction site has been abusing its power to make money off old navy items.
In the lawsuit, the Old New York company said it is “deeply disappointed” with Microsoft’s move to challenge its deal with eBay and to seek damages.
The suit also says that Microsoft’s actions have harmed the company’s reputation and damaged its bottom line.