US FTC sues Microsoft to block its $69 bn Activision Blizzard buy

WASHINGTON: The US Federal Trade Commission (FTC) has sued tech giant Microsoft from acquiring leading video game developer Activision Blizzard and its blockbuster game ‘Call of Duty’ for $69 billion. The FTC said the deal, the largest ever in the video gaming industry, would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business. “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,” Holly Vedova, Director of the FTC’s Bureau of Competition, said in a statement. Microsoft president Brad Smith said in a tweet on Friday that they have been committed since.
“Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC”. “While we believe in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present it in court,” Smith posted. Smith added the company continues to believe “our deal to acquire Activision Blizzard will expand competition and create more opportunities for gamers and game developers”.