The US Federal Trade Commission (FTC) has filed a lawsuit against technology giant, Microsoft for attempting to acquire renowned video game company Activision Blizzard and its popular game “Call of Duty” for $69 billion.
The largest purchase ever in the video game industry, according to the FTC, would allow Microsoft to stifle competition to its Xbox gaming consoles as well as its quickly expanding subscription content and cloud-gaming businesses.
On Thursday, December 8,2022, Holly Vedova, the Director of the FTC’s Bureau of Competition, released a statement saying, “Microsoft has already shown that it can and will withhold content from its gaming rivals. 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.”
In a tweet on Friday, December 9, Microsoft President Brad Smith stated that they have been devoted since “Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC”.
“While we believe in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present it in court.”
Brad Smith continued that the company still holds the view that “our deal to acquire Activision Blizzard will expand competition and create more opportunities for gamers and game developers”.
The projected Activision Blizzard acquisition by Microsoft has raised concerns from the Competition and Markets Authority (CMA) which said it “could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services (game streaming)”.
According to FTC’s complaint, Activision creates some of the most recognizable and well-known video game franchises, such as “Call of Duty,” “World of Warcraft,” “Diablo,” and “Overwatch,” and has millions of monthly active users worldwide.
“Activision currently has a strategy of offering its games on many devices regardless of producer. But that could change if the deal is allowed to proceed”.
Author-Abednego Abaidoo
