Confirmed: The FTC is suing to block Microsoft’s acquisition of Activision Blizzard
The Federal Trade Commission (FTC) is suing to block Microsoft‘s proposed acquisition of Activision Blizzard, it’s been reported.
An official statement made by the FTC alleges that the deal would not only give Microsoft an upper hand in the console market, but also in other areas such as subscription gaming and cloud gaming.
It claims that “the $69 billion deal, Microsoft’s largest ever and the largest ever in the video gaming industry, would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business”.
According to the FTC, the complaint cites previous examples of Microsoft acquiring other “valuable gaming content” and using it to suppress competition from rivals, pointing out its acquisition of ZeniMax, parent company of Bethesda, as a notable example.
Microsoft vice chair and president Brad Smith has now released a statement responding to the news.
“We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” Smith says.
“We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC.
“While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court.”
The FTC’s statement claims: “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.”
The FTC issues administrative complaints like this when it has “reason to believe” the law is being violated, and
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