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See you in court: the US does not approve Microsoft's giant deal - Walla! The Gaming Channel

2022-12-08T22:34:06.273Z


The US Federal Trade Commission files an antitrust lawsuit over the acquisition of Activision-Blizzard-King by Microsoft, claiming that its approval would harm competition in the console market


The US Federal Trade Commission has released an official statement in which it has decided to file an antitrust lawsuit over Microsoft's $69 billion acquisition of Activision-Blizzard-King, claiming that the merger and control will give it an advantage in the market.



The issue has been making headlines for months .

The latter when the purchase began to go through approval processes with regulators around the world, and in the meantime countries such as Brazil, Saudi Arabia and Serbia have already given their approval. Microsoft mainly needs the approval of the United Kingdom, the European Union, and the United States, which hardens its position on the issue.



The committee's claims state: "Approving the $68 billion deal, the largest ever made in the gaming industry, will allow Microsoft to suppress its competitors and convert the audience to its Xbox console and to the subscription services and cloud games that are growing in the market."

The Federal Trade Commission does not approve the acquisition of Activision-Blizzard-King (photo: official website, Microsoft)

The committee also noted that in recent years Microsoft has acquired a number of keys such as the media giant Znimax, which includes the distributor Bethesda and its other keys, and that it plans to make future titles such as Starfield and Redfall exclusive "despite the promises it gave to the antitrust authorities in Europe that it does not intend to prevent competition" .



Holly Wedva

, Director of the Competition Bureau of the Federal Trade Commission said: "Microsoft has demonstrated that it intends to withhold content from its rivals in the industry. We are looking to stop Microsoft from taking over a leading independent game developer and using it to harm the competition."



The main issue that started the affair is Sony's concern, which put pressure on the regulators, that Microsoft might make the Call of Duty series exclusive to Xbox and its subscription services.

Microsoft responded more than once that this was not the case, and it even offered Sony a 10-year contract that would ensure the title would remain available on PlayStation consoles.

The Federal Trade Commission also cites Bethesda games and making them exclusive as a step that harms competition (photo: official website, Microsoft)

Furthermore, they have gone so far as to commit to bringing the series back to Nintendo consoles as well, and recently the games have even become available again on Steam platforms.

On the part of

Gabe Newell

, the CEO of Valve, which operates Steam on the PC, it was stated that they "do not need a contract with Microsoft, because it always keeps its word."



In recent months, Microsoft tried to explain to the regulators that there is no intention of making the Call of Duty series exclusive to Xbox, Because then it will lose Sony's audience of buyers, which also collects from Activision a fee for game purchases through its consoles. Microsoft explained that there is no "economic sense" behind such a step.



Phil

Spencer

, the CEO of Xbox, also indicated that he is interested in joining Sony To reach agreements and sit down for negotiations: "Our goal is to become relevant on as many screens as possible. We have a plan for how to build relationships between Sony and Nintendo in which all parties benefit."



This antitrust lawsuit actually drags Microsoft's fight to the courts.

Microsoft was prepared for the scenario, and executives of the company and Activision-Blaziard have already stated that they will fight for the acquisition if necessary.

Currently, both the European Commission and the UK's Competition and Markets Commission have entered more stringent inspection stages.

Call of Duty: the game that started the whole mess (photo: official website, Activision)

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Tags

  • Gaming

  • Activision

  • Activision Blizzard

  • Microsoft

  • Sony

  • XBox

  • PlayStation

Source: walla

All news articles on 2022-12-08

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