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Microsoft’s proposed acquisition of Activision Blizzard thwarted by Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) has declared its intention to prevent Microsoft from acquiring Activision Blizzard. In a statement issued today, the agency stated that the proposed purchase would “enable it to undermine competition in high-performance gaming consoles.”

The planned $69 billion is opposed by FTC Chair Lina Khan because of what it would mean for the gaming industry. Furthermore, it was stated that the Xbox developer “would take control of top video game franchises” if Microsoft acquired Activision.

FTC Trying to Stop Microsoft Purchase

Few companies that create video games are as well-known as Activision Blizzard. The firm is the driving force behind some of the most well-known and highly successful video game brands, including Call of Duty and the Tony Hawk Pro Skater series.

Due to its success, Microsoft offered to purchase it for a hefty $69 billion. Consequently, the Federal Trade Commission’s actions have put that arrangement in peril. Microsoft and Activision’s unquestionably largest contract of its kind is currently engaged in a legal battle with the FTC.

The FTC complained to Microsoft, according to a statement they posted today. As a result, the firm is cited as having a “history of acquiring and leveraging important gaming content to stifle competition from competing platforms.”

The complaint cited ZeniMax’s prior purchases as support. The agreement granted Microsoft control of huge franchises including Starfield, the Fallout franchise, and the Elder Scrolls franchise from Bethesda Softworks, the parent firm.

Because of the agreement with ZeniMax, Microsoft was able to make many of these games exclusive to Microsoft, including Redfall and Starfield. According to the FTC study, assurances given to European antitrust authorities were false.

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Written by Newsway

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