FTC Announces Lawsuit To Block Microsoft’s Deal For Activision Blizzard

When discussing the Xbox acquisition plans for Activision Blizzard, the deal is going through the machine. But, it is also evident there are parties attempting to throw tools into the same machine in efforts to withhold the deal to be processed fully. Most apparently is Sony giving clear ambition to refrain the Xbox firm from being the new owner of this $70 billion purchase.

Of course, many are aware of the rules that the PlayStation company has slated from the U.K. CMA document previously. However, Microsoft Gaming CEO Phil Spencer also cited that the effort from Sony is not to dismantle further advances on the acquisition, but to also reduce Xbox becoming a larger platform ultimately. 

In an announcement from the United States Federal Trade Commission (FTC), it is officially blocking the Activision Blizzard deal with a new lawsuit. It believes the ambition to obtain such a large entity within the market could lead to “harm competition in high-performance gaming consoles and subscription services.”

Microsoft has already shown that it can and will withhold content from its gaming rivals. 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.

Holly Vedova, Federal Trade Commission Bureau of Competition Director

“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,” the FTC adds to its argument.

Surprisingly, things to be in favor of Microsoft regarding the FTC back in the summer. One report from SeekingAlpha suggested the Xbox firm properly fulfilled the requirements to the FTC investigation and by the end of September would be considered no justification to challenge. But, the deal faces a new battle in the courthouse as we sit in December now. You can read the full report by heading here.

Are you surprised by the FTC decision to block Microsoft’s latest acquisition?

Source: Federal Trade Commission