The FTC Is Reportedly ‘Likely’ to File an Antitrust Lawsuit to Block the Microsoft and Activision Deal
The Federal Trade Commission (FTC) is reportedly “likely” to file antitrust lawsuits to block the $68.7 billion deal that would see Microsoft acquire Activision Blizzard.
As reported by politics, The news comes from “three people in the know” who stress that the lawsuit is “not guaranteed.”
The FTC’s four commissioners haven’t taken the time to vote on complaints or even meet with attorneys for Microsoft and Activision.
As for the status of the deal, much of the “heavy lifting” has been completed, including the depositions of Microsoft CEO Satya Nadella and Activision CEO Bobby Kotick. This means he could get a decision on a potential antitrust suit as early as December.
The main crux of the matter, according to the FTC, is the concern that the deal will give “Microsoft an unfair boost in the video game market.”
Clearly, Sony is one of the biggest opponents to the deal, and the question of where Call of Duty will land is one of the hottest topics. Xbox head Phil Spencer has said Call of Duty will continue to ship on PlayStation “as long as there’s a PlayStation to ship to,” but he’s yet to comment on other issues the deal could create. I have a concern.
Sony has previously said that Microsoft is “a technology giant that acquires irreplaceable content at competitive prices ($68.7 billion) to give it an edge over the competition.”
However, there are concerns beyond Call of Duty. Because there are concerns about how future mega-hit titles will tip the scale if he is confined to one platform.
Google is also said to be against the deal, claiming that Microsoft “deliberately degraded the quality of the Game Pass subscription service when used with Google’s Chrome operating system.”If the transaction is successful, [Microsoft’s] incentive to do so. ”
Microsoft disputes many of these claims, conceding that it is still in third place even after the deal closes.
Microsoft spokesperson David Cuddy said, “Even after the deal closes, we will continue to lag behind Sony and Tencent in the market. Together, Activision and Xbox will benefit gamers and developers. It will make the industry more competitive,” he said.
Alongside the FTC, regulators in Europe and the UK have also launched detailed investigations, meaning it’s likely that no deal will be finalized until spring at the earliest. Microsoft and Activision must have an agreement by July 2023. Otherwise, the contract will have to be renegotiated.
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Adam Bankhurst is a news writer for IGN. You can follow him on Twitter @Adam Bankhurst and Cramp.
