U.S. Regulator Sues Microsoft to Block Activision Acquisition

“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, in a statement. “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 its complaint, the FTC said Microsoft previously suppressed competition from rivals through its 2021 acquisition of ZeniMax Media Inc., the owner of game developer Bethesda Softworks. The agency said Microsoft made several of Bethesda’s games, including “Starfield” and “Redfall,” exclusive to its own platforms, despite giving assurances to European antitrust authorities that it would do otherwise.

Microsoft said it continues to believe the deal would expand competition and create more opportunities for gamers and game developers.

“We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC,”

Brad Smith,

Microsoft vice chair and president, said. “While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court.”

Microsoft’s deal for Activision, which would be its biggest-ever acquisition, is also under investigation by antitrust regulators in the U.K and the European Union. The FTC alleged the deal would allow Microsoft, with ownership of Activision’s catalog of games such as Call of Duty, to prevent rivals such as

Sony Group Corp.

from accessing those products.

(More to Come)

Write to Sarah E. Needleman at [email protected] and Dave Michaels at [email protected]