The Federal Trade Commission (FTC) is suing to block Microsoft’s proposed acquisition of Activision Blizzard, developers of the Call of Duty. It says that if this $69 billion deal gets completed, Microsoft will have an unfair advantage over its competitors.
Microsoft announced the acquisition in January. The FTC called it the largest ever acquisition in the video gaming industry.
As per the report, the four-person commission voted to release the case. Three Democrat members (Chair Lina Khan, Rebecca Slaughter, and Alvaro Bedoya) voted in favor and one Republican (Christine Wilson) voted against. The commission reportedly met with Microsoft the day before to discuss the concessions.
If this lawsuit succeeds, it would be difficult for Microsoft to advance into its still growing metaverse. While Microsoft is stepping into the metaverse, it appears that the company has no intention of allowing “Web3” products, like NFTs. In July, the company banned NFTs on its game servers, including the global phenomenon Minecraft.
Holly Vedova, Director of the FTC’s Bureau of Competition, said “Microsoft has already shown that it can and will withhold content from its gaming rivals. 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.”
In response to the FTC lawsuit, Activision CEO Bobby Kotick wrote: “The allegation that this deal is anti-competitive doesn’t align with the facts, and we believe we’ll win this challenge.”
Kotick said , “Our players want choice, and this gives them exactly that. We believe these arguments will win despite a regulatory environment focused on ideology and misconceptions about the tech industry.”
Also read: FTC probes Crypto Firms over Misleading Advertising
