FTC's attempt to block Microsoft's acquisition of Activision Blizzard
In Brief
The Federal Trade Commission is pursuing legal action against Microsoft to inhibit the acquisition of Activision Blizzard, arguing it could centralize too much power in one company.
If this merger proceeds, it could position Microsoft as a dominant force in the gaming market, posing significant risks to its competitors in the industry.
The Federal Trade Commission has filed a lawsuit against tech behemoth Microsoft, aiming to halt the unprecedented acquisition of video game developer Activision Blizzard.
The governmental body dedicated to protecting consumers in the U.S. is striving to prevent unfair business practices by corporations. In this instance, the agency claims that if this acquisition goes ahead, Microsoft would gain control over numerous popular video game franchises. This power could block competitors from accessing Microsoft's content, leading to potential hardships for other gaming firms.
At the start of the year, Microsoft revealed plans to acquire Activision for an astonishing $69 billion, marking the largest deal in the gaming sector. Activision is renowned for producing blockbuster franchises like Call of Duty, World of Warcraft, and Diablo.
Microsoft's flagship gaming console is the Xbox , available in two models: the S Series and the X Series. The company also offers a subscription service called Xbox Game Pass, allowing gamers to select from over 100 titles.
The tech giant has a history of acquiring other game development studios to limit the capabilities of rival consoles. A notable example is the purchase of ZeniMax, which owns Bethesda Softworks. Following the acquisition, Microsoft made several of Bethesda's games exclusive to its consoles.
Conversely, Activision develops highly acclaimed games for various platforms, including PC, PlayStation, and mobile. The FTC is concerned the past may repeat itself, similar to the ZeniMax case, should this deal be approved.
\"Microsoft has demonstrated its intentions and ability to restrict access to content from its competitors. Today, we aim to prevent Microsoft from seizing control of a prominent independent game studio and utilizing it to undermine competition in rapidly evolving gaming markets,\"
commented Holly Vedova, director of the FTC’s Bureau of Competition.
Will American regulators effectively thwart Microsoft’s ambitions for metaverse gaming expansion and the acquisition of Activision Blizzard? Or will this deal achieve record-breaking success akin to Elon Musk’s Twitter ?
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