The FTC Wants To Block Microsoft’s Acquisition Of Activision

The Federal Trade Commission is looking to block Microsoft’s pending $69 billion acquisition of Activision Blizzard. 

According to a press release, the Commission, whose purpose is to protect consumers by promoting fair market competition, voted 3-1 on issuing a formal antitrust complaint. It cites Microsoft’s record of using previous acquisitions to “suppress competition from rival consoles” and points to the publisher’s purchase of ZeniMax as an example, stating: 

“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.”

The FTC adds that Activision is one of the few major third-party publishers left that offers several best-selling franchises on multiple platforms. It claims that if Microsoft’s acquisition is successful, it would have “the means and motive to harm competition”. The FTC lists hypothetical examples including Micrsoft reducing the quality of non-Xbox versions of Activision games or services, withholding content from other platforms, and manipulating pricing in an anti-consumer manner. 

Overwatch 2

“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.”

International government commerce agencies such as Brazil and Saudi Arabia have approved the Activision acquisition (with no regulatory concessions). It’s still under review for antitrust concerns by several international governments, most notably the European Commission. 

Microsoft yesterday announced that it has entered into a 10-year agreement with Nintendo in order to bring Call of Duty onto its platforms. The company also said it would keep Call of Duty available on Steam. It has stated repeatedly that Call of Duty will be on PlayStation in the future. All of this depends on the completion of all regulatory inspections. Sony is one of the biggest opponents of this acquisition. They claim that such consolidation would make it more expensive and be detrimental to their brand.