FTC Will Reportedly File Injunction Against Microsoft’s Acquisition of Activision Blizzard
The Federal Trade Commission (FTC) will file an injunction today to block Microsoft’s proposed acquisition of Activision Blizzard, CNN reports.
“We welcome the opportunity to present our case in federal court,” Brad Smith, Microsoft’s president, said in a statement to CNN. “We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market.”
In January 2022, Microsoft announced plans to buy Activision Blizzard for $69 billion. In December, the FTC sued Microsoft to block the deal from happening. The FTC argues that if the deal were to go through, Microsoft would “gain control of top video game franchises” and, therefore, would “harm competition in high-performance gaming consoles and subscription services by denying or degrading rivals’ access to its popular content.”
The only other regulator to block the deal is the UK’s Competition Markets Authority (CMA), citing concerns over the potential of the cloud gaming market. Both Activision and Microsoft have appealed that decision.
Microsoft has announced a raft of initiatives aimed at addressing regulator concerns over the deal. Examples include Nvidia’s 10-year agreement with Microsoft to bring Xbox Game Studios titles onto Nvidia’s cloud gaming service, GeForce Now.
In regards to Microsoft’s competition on the home console market, Microsoft struck a deal with Nintendo earlier this year, where the company announced plans to bring Call of Duty to Nintendo platforms “the same day as Xbox.” Microsoft reportedly also offered a similar deal to Sony that would guarantee Call of Duty would remain on PlayStation platforms, but Sony hasn’t accepted the deal, according to reports.
Taylor is a Reporter at IGN. You can follow her on Twitter @TayNixster.
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