US regulators say Microsoft’s takeover of Activision Blizzard could stifle competition in the video game market by limiting rivals’ access to the publisher’s biggest titles.
Passed by three votes to one, the Federal Trade Commission’s (FTC) lawsuit to block Microsoft’s takeover of Activision Blizzard is part of Lena Khan’s push for more aggressive merger control, particularly those carried out by major multinationals such as GAFAM.
#BREAKING: FTC tries to block acquisition of Microsoft Corp. Activision Blizzard Inc.: https://t.co/kewjn6MUX/1
— FTC (@FTC) December 8, 2022
Holly Vedova, Director of the FTC Competition Bureau, said:
Microsoft has already shown that it can and wants to deprive competitors of content. We want to prevent them from taking control of a leading independent publisher and using it to harm competition in several dynamic gaming markets.
Microsoft clashes with FTC over Bethesda exclusives management
In its lawsuit to reverse Microsoft’s takeover of Activision Blizzard, the FTC pointed to Microsoft’s history of acquiring and using content to limit competition, including with Bethesda’s mother ZeniMax Media. The American giant has decided to make several Bethesda games, including Starfield and Redfall, exclusive to Xbox consoles, despite reassuring European competition authorities that it has no reason to block these new licenses from appearing on other platforms.
While Activision Blizzard’s current strategy is to offer its games on multiple platforms, this could change if the FTC allows Microsoft to do so. By controlling Activision’s successful franchises, Microsoft will have both the means and the ability to harm competition by manipulating Activision’s prices, reducing the quality of Activision games or the player experience on consoles and competing game services, changing the terms and conditions of access to Activision content, or denying access to Activision content entirely. content to competitors, which will harm consumers.
Microsoft wants to fight to acquire Activision Blizzard despite FTC complaint
Stunned by the FTC’s announcement, Microsoft Chairman Brad Smith announced that the American company was looking to find a solution to its competition problems and had already offered concessions earlier this week:
We continue to believe that this agreement will increase competition and create more opportunities for gamers, game studios or publishers. We have full confidence in our case and welcome the opportunity to take our case to court.