The U.S. Federal Trade Commission (FTC) has moved to block Microsoft’s takeover of video game company Activision Blizzard, over concerns the deal could stymie competition by denying rivals access to popular gaming content .
Microsoft, owner of the Xbox video game console system, said in January 2022 that it would buy Activision for $68.7 billion, making it the games industry’s biggest deal in history. Activision is the creator of popular games such as Call of Duty and World of Warcraft.
The FTC voted 3-1 Thursday to file its complaint after a closed meeting, with all three Democratic commissioners voting in favor and the only Republican voting against.
The US agency, which enforces consumer protection and antitrust laws, said the merger could remove competitors from its Xbox game consoles and growing game subscription business.
The agency said Microsoft has a history of buying valuable game content and using it to stifle threats from competing consoles. The deal had also raised concerns with Britain’s competition regulator, who said it “could significantly reduce competition in games consoles, multi-game subscription services and cloud gaming services”. .
“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.”
Microsoft President Brad Smith said the company will fight the FTC. “Although we believe in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court,” he said.
