FTC Sues Microsoft to Block its Activision Blizzard Deal

FTC has filed a legal challenge to try and block the plan for Microsoft to buy Activision Blizzard for $68.7 billion. The lawsuit was filed after weeks of back and forth between Microsoft, Sony, and regulators over competition concerns and the future of Call of Duty. The FTC argues that the acquisition would “enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.”

FTC Sues Microsoft to Block its Activision Blizzard Deal

Regulators in the UK and EU are also scrutinizing the deal closely, despite Microsoft’s repeated attempts to appease regulators.

“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 statement. “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.”

On the other hand, Microsoft said that it is in the favour of growing gaming communities.

“We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers.” Brad Smith, Microsoft’s vice chair and the president said. “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.”

Microsoft offered Sony a 10-year deal on new Call of Duty games last month. However, Sony has not yet accepted the offer.

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