URGENT: FTC takes legal action to stop the acquisition of Activision Blizzard

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According to the well-known newspaper Washington Post, the US regulatory body, the FTC, filed a lawsuit to block the acquisition of Activision Blizzard🇧🇷

According to the report released by the newspaper, the American regulatory body argued that taking control of one of the largest game publishers in the world could “collapse” its competitors.

Furthermore, the FTC also argued that the acquisition may “barring technical innovation in games and services“, like that of cloud gaming🇧🇷 Check out:

🇧🇷Microsoft has already shown that it can and will withhold content from its gaming rivals. Today, we seek to prevent Microsoft from gaining control of a leading independent game studio and using it to undermine competition in many dynamic and fast-growing markets.said Holly Vedova, director of the FTC.

🇧🇷The commission voted Thursday in a party-line vote to issue the lawsuit in administrative court, with three Democrats in favor and one Republican against.” said the site.

The newspaper also found that this is the “Microsoft’s Biggest Regulatory Threat” in recent years, which always saw favorable climates for its acquisitions. It is worth remembering that yesterday, Brad Smith, president of Microsoft, had confirmed a meeting with the FTC regulators, but apparently, it did not go well.

Check out the official publication of the regulatory body:

🇧🇷The agency alleges that Xbox will gain control of major video game franchises, allowing it to cripple competition in high-end gaming consoles and subscription services by denying or degrading rivals’ access to its popular content.🇧🇷

🇧🇷The FTC’s complaint notes that the $69 billion deal, Microsoft’s biggest and the video game industry’s biggest, would allow rivals to take down its consoles and its fast-growing subscription content and cloud gaming business.🇧🇷

🇧🇷The agency’s complaint also points to Microsoft’s history of acquiring and using valuable game content to suppress competition from rival consoles, including its acquisition of ZeniMax, the parent company of Bethesda Softworks (a well-known game developer).🇧🇷

“THE agency notes that Microsoft decided to make several Bethesda titles, including Starfield and Redfall exclusive to Microsoft, despite assurances it gave to European antitrust authorities that it had no incentive to withhold games from rival consoles.🇧🇷

🇧🇷With control over Activision’s wildly successful franchises, Microsoft would have the means and motive to undermine competition by manipulating Activision’s prices, degrading Activision’s game quality or player experience on rival game consoles and services, according to the FTC.🇧🇷

🇧🇷The FTC alleges that the tech giant may also change the terms and timing of access to Activision’s content or withhold competitors’ content entirely, resulting in harm to consumers.🇧🇷


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