The FTC is suing to block Microsoft’s acquisition of Activision Blizzard

The last week has been a rollercoaster for the gaming industry, as Microsoft's proposed acquisition of Activision Blizzard has continued to make headlines. A few weeks ago it was reported that the FTC would sue to block the deal, but then a subsequent report claimed that the panel scrutinising the deal had shifted opinion. Now, the FTC has made its official announcement and the commission will in fact be attempting to block the acquisition from going ahead. 

The FTC announced today that it is suing to block Microsoft's acquisition of Activision Blizzard, claiming that Microsoft “can and will” withhold content in order to harm competition in the gaming market. Microsoft had tried to avoid this by promising to keep Call of Duty on PlayStation, and also expanding its commitment to keeping the franchise multiplatform by agreeing to bring future titles to Nintendo consoles.

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova, Director of the FTC’s Bureau of Competition. “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.”

Microsoft and Activision executives have publicly expressed a willingness to fight regulators on this, so Microsoft might end up entering a legal battle with the US government. The company may also face similar legal issues in the EU and UK, as regulators in those territories are also investigating the deal.

KitGuru Says: Microsoft has not yet issued a public statement on the FTC's decision. When the FTC sued to block Nvidia's acquisition of Arm, the company dropped the deal swiftly, but Microsoft has sounded determined to push this deal through, so we'll have to wait and see what their next move will be. 

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