FTC seeks to block Microsoft’s acquisition of Activision Blizzard

[Wrexis]

FTC Seeks to Block Microsoft Corp.’s Acquisition of Activision Blizzard, Inc.

The Federal Trade Commission is seeking to block technology giant Microsoft Corp. from acquiring leading video game developer Activision Blizzard, Inc.

www.ftc.gov

The Federal Trade Commission is seeking to block technology giant Microsoft Corp. from acquiring leading video game developer Activision Blizzard, Inc. and its blockbuster gaming franchises such as Call of Duty, alleging that the $69 billion deal, Microsoft's largest ever and the largest ever in the video gaming industry, would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.

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In a complaint issued today, the FTC pointed to Microsoft's record of acquiring and using valuable gaming content to suppress competition from rival consoles, including its acquisition of ZeniMax, parent company of Bethesda Softworks (a well-known game developer). Microsoft decided to make several of Bethesda's titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles.

"Microsoft has already shown that it can and will withhold content from its gaming rivals," said Holly Vedova, Director of the FTC's Bureau of Competition. "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."

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Guess those 10 year commitments weren't enough.

 

[kodax_shc]

Atmosphere at The Game Awards should be interesting with this news.

 

[Dest]

I do not expect this to actually stop the acquisition, only delay it.

 

[Porcupine]

Does that mean it's completely done? Or a new investigation?

 

[Funkelpop]

Atmosphere at The Game Awards should be interesting with this news.

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Highly doubt it. Most people who sit in those seats are like influencers or something.

 

[SpottieO]

Interesting, I don't see how the FTC wins this lawsuit though.

 

[Aztechnology]

It's insane that COD apparently has this much power. Because let's be honest. That is the main point of contention.

 

[nihilence]

Specifically high performance gaming consoles?

Nintendo has done fine without it.

And they offered/committed to Sony too I thought.

The verbiage sounds at odds with recent PR.

 

[Deleted member 17289]

It was bound to happen. Deal is too big not to raise red flags.

 

[Yoshimitsu126]

So is Switch still getting COD or not.

 

[Dyle]

Neat Khan actually got 3 votes, it seemed like it was destined for a 2-2 tie.

Not at all surprised that Starfield and Redfall are being effectively called out here as a significant factor. The Minecraft comparisons never resonated when they aren't following that standard with their other acquisitions.

 

[Javier]

But resetera told me this was nothing and the deal would go without a hitch.

 

[Pein]

Good, massive corporations don't need to be bought out and consolidated.

 

[vixolus]

Specifically high performance gaming consoles?

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literally the "this might harm Sony" argument. Amazing

 

[Sealord of Braavos]

A lot of lawyers are going to make a lot of money.

 

[Precious Tritium]

Makes sense why Microsoft was going so hard with the PR recently. I'm sure that will be a hard lawsuit for the FTC.

 

[Shard Shinjuku]

I suspect the EU and the UK will also follow suit.

 

[BlueManifest]

I do not expect this to actually stop the acquisition, only delay it.

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Why would it not stop it? It's possible to stop acquisitions

 

[Disco Infernal]

Does that mean it's completely done? Or a new investigation?

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It means the FTC gets to be embarrassed in court yet again.

 

[Starsunder]

Don't see FTC winning this. I believe this will happen, sooner or later

 

[Bucca]

Good.

 

[SirKai]

Good. I doubt this will hold, but all major company acquisitions, especially ones getting groups valuing $5B+, should be analyzed with a fucking magnifying glass. I wish the Bungie buy would have gotten this scrutiny too but ABK is such a monumentally bigger fish there's no way they should be allowed to get scooped up.

 

[Oticon]

Damn FTC doing their job?

 

[Hero]

Well, there it is, as expected. Will certainly be a roller coaster from all sides now.

 

[zombiejames]

Microsoft decided to make several of Bethesda's titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles.

"Microsoft has already shown that it can and will withhold content from its gaming rivals," said Holly Vedova, Director of the FTC's Bureau of Competition.

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[FiXalaS]

Good, massive corporations don't need to be bought out and consolidated.

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For just this one case though I wish it happens.

 

[Zebesian-X]

Gamers everywhere feasting on the drama for another 6 months 😎😎

 

[Shoichi]

Microsoft seemed to have expected this to be the the outcome from earlier reports, being ready to defend it when the FTC lawsuit was rumored.
So will be interesting to see the ending to this whole debacle, another couple months to possibly a year or more of news headlines between ActiBlizz, MS and Sony with Nintendo being caught in the middle possibly even though they have tried to avoid involvement besides the COD agreement

 

[Yuntu]

Does that mean it's completely done? Or a new investigation?

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It means the FTC wants to block it and sue not that it is blocked essentially. MS will obviously fight against this.

 

[headspawn]

But resetera told me this was nothing and the deal would go without a hitch.

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This was always expected... if they expected the deal to go through earlier they wouldn't have projected mid 2023 closing.

 

[masizzai]

This acquisition is gonna take like 2 years to be settled huh?

 

[Rolento]

This is all because of Tony Hawk's Pro Skater, isn't it?

 

[Fady]

This is promising. I'd rather none of the big three buy out publishers left and right. Personally wasn't a fan of Bethesda being bought either.

 

[Mathieran]

I wonder what kind of track record the FTC has.

 

[nolifebr]

How much to MS buy the FTC?

 

[Grunty]

Highly doubt it. Most people who sit in those seats are like influencers or something.

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No they're not.

 

[Crono]

I dont like Sony nor Microsoft. But I hope Microsoft wins this. Pains me to say that..

 

[Wein Cruz]

Hopefully the deal still ends up going through. I'd rather play those games on game pass.

 

[Rogote]

Burn it all down, Khan.

 

[Acquiescence]

I mean, this...

...is bang on the money. I'm glad the FTC saw the truth.

 

[Xando]

Does that mean it's completely done? Or a new investigation?

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It means corporate lawyers will walk all over regulators in court once again

 

[Connope]

Specifically high performance gaming consoles?

Nintendo has done fine without it.

And they offered/committed to Sony too I thought.

The verbiage sounds at odds with recent PR.

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To be fair the agreements have only specifically been about COD, but this post doesn't single out COD and instead only mentions it along with the other Activision Blizzard IPs. The FTC don't seem to think COD is "special" (in the context of Activision Blizzard IPs) in the same way as has been being discussed earlier.

 

[kIdMuScLe]

Man I don't see the issue? MS can screw up COD just like they screwed up Halo. So is not a guaranteed that it'll work out for MS

 

[Dsezer]

This makes sense. Hopefully they win, similar to what happened with Bethesda, Microsoft would eventually make heavy hitters exclusive.

 

[SweetNicole]

FTC won't win

 

[Deleted member 6235]

crazy stuff. didn't expect them to actually sue.

 

[RetroRunner]

FTC really wants that L

 

[CupOfDoom]

The FTC, regulators in general, should be way more skeptical of mergers than they typically have been.

I don't buy the "cod is too big" argument though.

 

[Ascenion]

I just want my goddamn money.

 

[AEF1907]

Microsoft decided to make several of Bethesda's titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles.

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🧐