Microsoft’s proposed purchase of Activision Blizzard is dealt a possibly-fatal blow as the FTC files an antitrust lawsuit.
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Last month we heard reports that Microsoft’s proposed acquisition of Activision Blizzard could potentially face a major roadblock in the form of an antitrust lawsuit from the US Federal Trade Commission, and now, that’s exactly what’s happened. The FTC is looking to block the proposed $69 billion Microsoft-Activision deal, alleging that it would “enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.” In their press release, the FTC cites Microsoft’s treatment of Bethesda and its franchises, which have become Xbox exclusives, as one of the main reasons they’re moving to block the Activision deal. Here’s the FTC’s full rationale for bringing the antitrust suit…
“The Federal Trade Commission is seeking to block technology giant Microsoft Corp. from acquiring leading video game developer Activision Blizzard, Inc. and its blockbuster gaming franchises such as Call of Duty, alleging that the $69 billion deal, Microsoft’s largest ever and the largest ever in the video gaming industry, would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.
