What do you want to know
- Microsoft is trying to buy Activision Blizzard for $69 billion.
- The deal is undergoing regulatory scrutiny around the world.
- The FTC is suing to block Microsoft’s acquisition of Activision Blizzard.
- Microsoft and Activision have indicated they will fight for the deal in court.
Microsoft’s biggest ever acquisition has hit a snag as the deal will have to be fought out in court.
The Federal Trade Commission (FTC), the US regulatory authority, has announced (opens in a new tab) Thursday that he is suing to block Microsoft’s purchase of Activision Blizzard. The deal, valued at nearly $69 billion, would see Microsoft add Activision Publishing, Blizzard Entertainment and King to existing Xbox development teams.
In its press release, the FTC cites Microsoft making Starfield and Redfall exclusive games as a reason Microsoft cannot be trusted. Both games, in development at Bethesda Game Studios and Arkane Austin respectively, are new IPs developed exclusively for Xbox Series X|S and Windows PC.
“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova, director of the FTC’s Competition Bureau. “Today, we seek to prevent Microsoft from taking control of a leading independent game studio and using it to harm competition in several dynamic and fast-growing game markets.”
Over the past few weeks, Microsoft has taken several steps to convince regulators that the deal is good for gaming as a whole. Microsoft has entered into a neutrality agreement with the Communication Workers of America (CWA), agreeing not to interfere with the right of Activision Blizzard employees to unionize beginning 60 days after the acquisition closes.
Based on the agreement, Microsoft is allowing Bethesda Softworks employees to unionize, with more than 300 quality assurance staff at the publisher’s US studios voting to organize or not.
“We continue to believe that this agreement will broaden competition and create more opportunities for gamers and game developers. We have been committed from day one to resolving competition issues, including this week offering proposed concessions to the FTC,” Microsoft Chairman Brad Smith said. . “While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court.”
