This lawsuit could stop Microsoft from acquiring Activision Blizzard

techradar.com:

The Federal Trade Commission (FTC) has filed a lawsuit in an effort to block Microsoft’s planned acquisition of Activision Blizzard. 

Back in January, Microsoft announced its plans to buy Activision Blizzard, but according to a press release issued by the US watchdog(opens in new tab), the FTC claims that Microsoft’s proposed acquisition of the Call of Duty publisher “would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business”. 

The redacted complaint(opens in new tab) itself claims that the merger would “substantially lessen competition or tend to create a monopoly in multiple markets.” In layman’s terms, it could give Microsoft control over certain markets due to a lack of competition.

Not only does the FTC fear the acquisition creates “increased incentive to use [Microsoft’s] control of Activision titles to disadvantage Microsoft’s competitors,” but the complaint also details concerns for Microsoft’s potential to manipulate markets in the long-term by adjusting Activision’s price points. Microsoft has already announced plans to hike the price of Xbox exclusives in 2023.

The suit is a critical hurdle in Microsoft’s acquisition of Activision Blizzard, and it could wind up putting a stop to its proposed purchase altogether.

In recent years, Microsoft has loosened the company purse strings considerably; its offer of an eyewatering US$68.7 billion for the Call of Duty publisher is just the tip of the iceberg. The suit brought forward by the FTC highlights Microsoft’s more recent acquisitions as a cause for concern, should its proposed Activision Blizzard acquisition go ahead.

“Microsoft’s past conduct provides a preview of the combined firm’s