FTC wants to prevent Microsofts takeover of Activision Blizzard

FTC wants to prevent Microsoft’s takeover of Activision Blizzard

The US Federal Trade Commission (FTC) is expected to file an antitrust lawsuit trying to block Microsoft Corporation’s purchase of gaming giant Activision Blizzard – the deal is valued at $69 billion, the publication reports. Politically with reference to three own sources.

    Image source: efes / pixabay.com

Image source: efes / pixabay.com

The lawsuit promises to be the FTC’s biggest move yet in its attempt to rein in the tech giants. It will also be a kind of black mark for Microsoft, which has eluded scrutiny from antitrust authorities for two decades. Two sources say a lawsuit is pending, and the four FTC commissioners have not yet voted on the initiative or met with company lawyers. However, staff in the department examining the transaction are skeptical of the companies’ arguments.

The examination is not yet complete, although most of the work has already been done: in particular, the statements of Microsoft CEO Satya Nadella (Satya Nadella) and Activision boss Bobby Kotick (Bobby Kotick) have been made. If the model commission continues to examine the case, the lawsuit could be filed as early as December. The FTC must answer the question of whether the acquisition of Activision would give Microsoft an unfair advantage in the gaming market. One of the main opponents of the deal is Sony, which fears Microsoft could bring popular Activision franchises like Call of Duty exclusively to its platforms, worsening the Japanese manufacturer’s position.

    Image source: activivisionblizzard.com

Image source: activivisionblizzard.com

Another opponent of the deal is Google, Politico sources say. The company, whose presence in the gaming market is not that big and the cloud gaming service Stadia is about to be closed, also suspects Microsoft of unfair behavior. According to the search giant, Microsoft intentionally slowed down the performance of its services on computers running Chrome OS. And with Activision, the company will have more leverage to incentivize sales of its own hardware against Google’s interests.

Now the FTC has no way of permanently blocking the transaction — under the procedure, the agency first seeks an injunction in the federal court of general jurisdiction, after which it reviews the case on its own, where it makes the final decision. Therefore, filing a lawsuit can indicate the true intentions of the Commission.

About the author

Alan Foster

Alan Foster covers computers and games and all the news in the gaming industry.

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