The transaction would give Microsoft some of the most popular video game franchises,such as Call of Duty
“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.”
An FTC official,speaking anonymously to discuss the complaint,said the agency was concerned that Microsoft could deny access,delay availability or degrade the quality of Activision Blizzard’s most popular titles to rival platforms. Those concerns relate not only to consoles,but also to subscription services and cloud-based gaming,two markets still in development,the official said. A public version of the complaint isn’t yet available.
Microsoft’s proposed Activision Blizzard deal is the company’s largest ever and one of the 30 biggest acquisitions of all time. The transaction would give Microsoft some of the most popular video game franchises,such as Call of Duty and World of Warcraft. The Xbox maker already owns the Halo franchise and Minecraft virtual-world-building game.
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“We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” said Microsoft president Brad Smith. He said the company is committed to addressing competition concerns and that it offered concessions to the FTC earlier this week.
“We have complete confidence in our case and welcome the opportunity to present our case in court,” Smith added.
Activision shares fell 1.5 per cent to $US74.76 after falling as much as 3.9 per cent earlier. Microsoft shares rose 1.2 per cent to $US247.40.