The regulatory agency is stepping in
The U.S. Federal Trade Commission (FTC) is suing to block Microsoft from acquiring Activision Blizzard. The regulatory agency issued a complaint today, saying the deal would enable Microsoft to “suppress competitors” to Xbox’s console, cloud gaming, and subscription content.
In apress release from the FTC, the agency argues thatStarfieldandRedfall‘s Xbox console exclusivity runs counter to assurances given to European anti-trust authorities. The FTC also argues that Activision is one of a “only a very small number” of top video game developers in the world that create and publish games for multiple devices.
“With control over Activision’s blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely, resulting in harm to consumers,” said the FTC in a statement.
An ongoing battle
Since the Microsoft and Activision Blizzard deal was announcedearlier this year, the potential acquisition has been under scrutiny fromvarious regulatory bodies. Microsoft has been trying to offerCall of Dutycontracts to PlayStation, and iteven brought Nintendo into the mixthis week. Sony hasclaimedthat this deal could hurt developers and consumers. All the while, Microsofthas seemed confidentthe deal will go through.
“We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” said Microsoft vice chair and president Brad Smith in a statement on the FTC complaint toThe Verge. “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.”
