FTC sues to block Microsoft's Activision Blizzard merger

engadget.com:

The Federal Trade Commission has filed an antitrust complaint in a bid to block Microsoft's planned $68.7 billion takeover of Activision Blizzard. The FTC started looking into the deal and its potential impact on the video game market soon after it was announced in January. Evidently, the agency was concerned enough to try and pump the brakes on the buyout. The FTC said that, were the deal to go through, it "would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business."

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” Holly Vedova, director of the FTC’s Bureau of Competition, said in a press release. “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's commissioners voted in favor of the lawsuit along party lines, with the three Democratic members approving it. The lone Republican Commissioner Christine S. Wilson voted against the suit in a closed-door meeting.

"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 Bethesda Softworks (a well-known game developer)," the agency said in a press release. "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."

While the lawsuit doesn't necessarily kill the deal, it's unlikely to be resolved by July, as