FTC sues to block Microsoft, Activision Blizzard acquisition

All the rumours were true.

The US Federal Trade Commission (FTC) has sued to block Microsoft’s planned acquisition of Activision Blizzard.

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

The FTC furthers that the move will suppress competition within the industry, saying Activision Blizzard is “one of only a very small number of top video game developers in the world that create and publish high-quality video games for multiple devices”.

“But that could change if the deal is allowed to proceed,” the FTC continued. “With control over Activision’s blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely, resulting in harm to consumers.”

Microsoft has responded to the suit, saying it believes the opposite of the FTC’s fears will come true.

“We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” said Microsoft’s Vice Chair and President, Brad Smith, in a statement. “We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC.”

Smith continued on to say that, “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.”

We’ll keep you informed as this progresses.