FTC files to block Microsoft's $69B Activision Blizzard acquisition2023-06-13 18:40 by DanielaTags: FTC, Microsoft, Activision Blizzard
The Federal Trade Commission sued Microsoft Corp. in federal court Monday to block the company from closing its $69 billion acquisition of Activision Blizzard Inc. The FTC said it fears that should Microsoft be allowed to buy Activision, Microsoft would have the power to "withhold or degrade" Activision’s gaming products, through price, game quality, experience on competitors' offerings or "withholding content from competitors entirely." In other words, the FTC is worried that Microsoft could withhold popular games from Activision Blizzard's library from launching on other game consoles, like those sold by Sony. Or it could charge more for games that launch on other consoles. Call of Duty is one title that has come up and, while it's currently available across platforms and Microsoft has promised to continue to sell that series of games broadly, regulators fear that Microsoft could have the power to hold those or similarly popular future titles for Xbox, taking buyers away from Sony and other console makers. In response, Microsoft VP and President Brad Smith told FOX Business, "We welcome the opportunity to present our case in federal court. We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market," he finished. If the FTC is successful in its emergency attempt to bar the move, its administrative case against the merger would be able to proceed as normal. Its next scheduled hearing is on August 2, weeks after the merger's July 18 deadline will have come and gone. Read more -here-
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