The proposed merger between Microsoft and Activision Blizzard has caused a stir in the video game industry, with the European Union giving the green light after Microsoft assured it wouldn’t disrupt competition. The UK government blocked the acquisition, and now the US Federal Trade Commission (FTC) has filed a lawsuit against Microsoft citing a variety of concerns, including dampened innovation, reduced consumer choice, higher prices, and harm to competition in gaming consoles and subscription services. The FTC plans to request a court-issued block and injunction to prevent Microsoft and Activision Blizzard from completing the deal.
One of the FTC’s primary concerns is that Microsoft’s acquisition of Activision Blizzard could give it an unfair advantage in the gaming market, especially regarding gaming consoles, game subscription services like Xbox Game Pass, and cloud-based game streaming services. The trial is scheduled for early August, and Microsoft has no immediate plans to make Activision Blizzard games exclusive to its own platform or to pursue any anti-competitive tactics.
Microsoft President Brad Smith responded to the FTC’s legal action by stating that it would “accelerate the decision-making process” and expressing confidence in Microsoft’s vision for the acquisition. While Nintendo accepted Microsoft’s offer to keep Call of Duty on rival platforms for a decade, Sony rejected the proposal.
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Basant Kasayap is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Bollywood to regional cinema, she offers readers an insider’s perspective on the world of movies, music, and pop culture.
