The US Federal Trade Commission (FTC) has moved to block Microsoft’s acquisition of the video game company Activision Blizzardciting concerns that the deal would thwart competition by blocking competitors from accessing popular gaming content.
Microsoft, which owns the Xbox video game console system, said in January 2022 that it would buy Activision for $68.7 billion, making it the largest game industry deal in history. Activision is the manufacturer of popular games including Call of Duty and World of Warcraft.
The FTC voted 3-1 Thursday to release its complaint after a closed meeting, in which the three Democratic commissioners voted in favor and the lone Republican voted against.
The US agency, which enforces consumer protection and antitrust laws, said the merger could suppress its competitors X-Box Game consoles and a growing game subscription business.
The agency said Microsoft has a record of purchasing valuable gaming content and using it to suppress threats from competing consoles. Deal also raised concerns about the UK’s competition regulator, which it said could “significantly reduce competition in game consoles, multi-game subscription services and cloud gaming services”.
“Microsoft has already shown that it can and will withhold content from its gaming competitors,” said Holly Vidova, director of the Federal Trade Commission’s Office of Competition. “Today we seek to prevent Microsoft from taking control of a leading independent game studio and using it to harm competition in dynamic and fast-growing game markets.”
Microsoft President Brad Smith said the company will fight the Federal Trade Commission. “While we believed in giving peace a chance, we have complete confidence in our cause and welcome the opportunity to present our case in court,” he said.