FTC Sues to Block Microsofts $69 Billion Activision Blizzard Acquisition

The FTC is seeking to block Microsoft from acquiring Activision Blizzard, maker of video-game franchises including “Call of Duty,” alleging that it would let Microsoft “suppress competitors” in the sector.

The proposed $69 billion deal, announced earlier this year, would be Microsoft’s biggest ever and the largest to date in the video-game. The Federal Trade Commission, in announcing the lawsuit, alleged that Activision Blizzard would let Microsoft “suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.”

Microsoft did not immediately comment on the FTC action.

In the lawsuit, the FTC pointed to Microsoft’s record of acquiring and using valuable gaming content to suppress competition from rival consoles, including its acquisition of ZeniMax, parent company of game developer Bethesda Softworks. Microsoft decided to make several of Bethesda’s titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles.

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova, Director of the FTC’s Bureau of Competition. “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”

The FTC vote to sue Microsoft over the deal was 3-1, with commissioner Christine S. Wilson voting no.

Read More About:

Source: Read Full Article