US FTC seeks to block Microsoft’s purchase of Activision Blizzard

The US Federal Trade Commission filed.


A lawsuit against the agreement between Microsoft  and Activision Blizzard for US$69 million with the intention of blocking the purchase.

The US Federal Trade Commission (FTC) has just dealt the deadliest blow against Microsoft ‘s purchase of Activision Blizzard . The regulatory body filed a lawsuit against the acquisition of the company that owns Call of Duty and Warcraft for US$69 million, putting at great risk one of the largest transactions in the technology industry in all of history.

As reported by CNN , the administrative complaint was filed by the FTC on Thursday, December 8, arguing that the deal that would originally make Microsoft the third-largest video game distributor in the world would give the technology firm “both the media as the motive to harm competition .

The US FTC opposes the purchase of Activision Blizzard

The agency’s statement notes that Microsoft ‘s acquisition of Activision Blizzard would have a negative impact on video game prices, as well as on the quality of new titles, on console player experiences, and on streaming services. streaming or cloud gaming.

Holly Vedova , Director of the FTC ‘s Office of Competition , said: “Today we are trying to stop Microsoft from taking control of a leading independent game studio and using it to harm competition in multiple dynamic gaming markets and fast growing” .

This is the biggest blow the deal has suffered since it was announced last January. Microsoft has been dealing with complaints, doubts and questions from regulators around the world with the intention of convincing them to give the go-ahead to the purchase of Activision Blizzard . Likewise, the lawsuit represents the biggest challenge for the FTC since it was against Meta , parent of Facebook , in 2020.

Microsoft intends to fight

After filing the FTC lawsuit against the agreement, Brad Smith -current president of Microsoft- spoke through his social networks and indicated that the company continues to believe that the agreement will expand competition and create more opportunities for gamers and developers of video game. Therefore, it is not willing to give in and will fight the decision of the US regulatory body in court.

“We have been committed from day one to addressing competition concerns, even offering proposals for concessions to the FTC earlier this week. Although we believe peace should be given a chance, we have full confidence in our case and welcome the opportunity to bring it to court , ” Smith said in his Twitter post.