FTC sues to block Microsoft-Activision Blizzard $69B merger

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The FTC sued to block Microsoft’s planned $69 billion takeover of video game company Activision Blizzard, saying it could suppress competitors to Microsoft’s Xbox game console and its growing games subscription business.

FILE - The Activision Blizzard Booth during the Electronic Entertainment Expo in Los Angeles, June 13, 2013. The Federal Trade Commission said Thursday, Dec. 8, 2022, that it is suing to block Microsoft’s planned $69 billion takeover of video game company Activision Blizzard, saying it could suppress competitors to its Xbox game consoles and its growing games subscription business.

Microsoft’s president, Brad Smith, signaled in a statement Thursday that the company is likely to challenge the FTC’s decision. Microsoft announced the merger deal in January but has faced months of resistance from Sony, which makes the competing PlayStation console and has raised concerns with antitrust watchdogs around the world about losing access to popular Activision Blizzard game franchises such as the military shooter game Call of Duty.

Microsoft announced its latest promise Wednesday, saying it would make Call of Duty available on Nintendo devices for 10 years should its acquisition go through. It has said it tried to offer the same commitment to Sony. “The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge,” Kotick wrote."We believe these arguments will win despite a regulatory environment focused on ideology and misconceptions about the tech industry,” he said.

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On a case by case basis does not guarantee a game will come to another service, there is no official word from Microsoft stating Redfall or Starfield (the two games in question) were to be released on other consoles.

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