June 14, 2023
The Federal Trade Commission (FTC) has filed a lawsuit to block Microsoft’s proposed acquisition of Activision Blizzard, alleging that it would “substantially lessen competition” in the video game industry.
The FTC’s lawsuit is the latest setback for Microsoft’s acquisition of Activision Blizzard, which was halted in April by the UK’s Competition and Markets Authority (CMA) due to concerns about less innovation and fewer alternatives for players. Microsoft has filed an appeal against the CMA’s ruling, and a hearing is set for July.
The FTC has now filed its own complaint based on the identical issues highlighted by the CMA in the United Kingdom. According to the FTC, the purchase would give Microsoft too much influence over the video game industry, resulting in higher costs and fewer options for consumers.
Microsoft has refuted the FTC’s charges and has stated that it would defend the complaint. It claims that the purchase would help consumers by providing a “one-stop shop” for gaming, resulting in greater innovation and reduced pricing.
The sources for this piece include an article in BBC.
