Microsoft’s Activision Blizzard acquisition is being blocked by the FTC

To support its case, the FTC said that Microsoft has a record of acquiring gaming content, such as ZeniMax’s, and using it to suppress competition from rival gaming consoles. 

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova, director of the FTC’s Bureau of Competition. “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.”

Activision Blizzard’s popular video game titles, which also include Overwatch, World of Warcraft, Overwatch, Candy Crush and Diablo, garner over 154 million monthly active users around the world, according to the FTC. All of these video games are currently available to the public regardless of gaming console. If Microsoft did acquire it, there is the potential that many of those users would no longer have access to it. 

“With control over Activision’s blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely, resulting in harm to consumers,” said the FTC. 

Recent times have shown the possible negative effects of a major acquisitions. The 2010 Ticketmaster and LiveNation merger, which basically gave Ticketmaster a monopoly over the ticket-buying industry, caused outrage last month when fans were unable to purchase Taylor Swift tickets from Ticketmaster and had nowhere else to turn for tickets.  

When Microsoft initially announced its acquisition plans, it said the acquisition was meant to make gaming more accessible to everyone, bringing “the joy and community of gaming to everyone, across every device”. 

“Players everywhere love Activision Blizzard games, and we believe the creative teams have their best work in front of them,” said Phil Spencer, CEO, Microsoft Gaming. “Together we will build a future where people can play the games they want, virtually anywhere they want.”

Microsoft has yet to make a public announcement about the lawsuit.