April 26, 2025
Trending News

The FTC is filing a lawsuit to try to stop Microsoft from buying Activision

  • December 9, 2022
  • 0

The United States Federal Trade Commission filed a inquiry block Microsoft’s purchase of Activision Blizzard, an operation in which those from Redmond want to invest 68,700 million dollars.

The FTC is filing a lawsuit to try to stop Microsoft from buying Activision

The United States Federal Trade Commission filed a inquiry block Microsoft’s purchase of Activision Blizzard, an operation in which those from Redmond want to invest 68,700 million dollars. The FTC says the purchase will “harm competition” between game console makers such as Sony and Nintendo.

In the text of the complaint, the FTC pointed out that Microsoft used companies it previously bought, such as ZeniMax Media, to produce several high-end titles, such as Starfield or Redfall, exclusively for devices with its software. According to Holly Bed, Director of the FTC’s Office of Competition«Microsoft has already shown that it can push content away from its gaming rivals. We want to prevent Microsoft from gaining control of a leading indie studio and using it to harm competition in many fast-growing and dynamic gaming markets.«.

The FTC believes this despite the fact that Activision or Microsoft executives have spent weeks assuring their audiences and various regulators around the world that Microsoft will not abuse its position as one of the largest video game publishers and makers of the Xbox console. But Sony, and specifically its PlayStation division, has raised concerns about the deal with regulators in the United States and abroad, saying it’s not enough for Microsoft to say titles like Call of Duty will be available for PlayStation.

So, Microsoft President Brad Smithresponded on Twitter to the FTC’s lawsuit notice, noting that they carry “it has pledged to address anticompetitive concerns from the outset, even offering to make concessions proposed by the FTC earlier this week. Although we believed we would have a quiet party, we had complete confidence in our case and accepted the opportunity to present our case in court.«.

or part thereof, Activision Blizzard CEO Bobby Kotickissued a statement reiterating its confidence that the company’s purchase agreement would close and that the purchase would take place.

The FTC’s move against Microsoft, after months of investigating the deal, highlights one of the US government’s main efforts to stop the big tech companies that have become some of the most valuable companies in the world. . In addition to this growth, competition and regulators have long wondered whether the tech industry has too much power and whether some companies are behaving like monopolies.

Microsoft is also facing problems in completing this purchase with regulators in the United Kingdom and the European Union. Last October, the European Commission asked other game developers for their opinion on the purchase. Additionally, they launched an in-depth investigation into the operation in November, and it’s more than likely that Microsoft will make concessions to satisfy the regulator.

Regarding the FTC lawsuit, by itself, that doesn’t mean the Microsoft-Activision deal is deadbut a move of this caliber by a federal regulator may result in a failed purchase, so we’ll have to wait and see how that plays out.


Source: Muy Computer

Leave a Reply

Your email address will not be published. Required fields are marked *