FTC files suit to stop Microsoft’s $69 billion Activision purchase
Enlarge / Taking a close look... (credit: Aurich Lawson / Ars Technica)
The Federal Trade Commission has filed a lawsuit seeking to block the proposed $69 billion merger between Microsoft and Activision Blizzard. By a 3-1 vote, the regulatory commissioners approved the filing of an "administrative complaint" showing they have "reason to believe" antitrust law is being violated and will argue as much in front of an administrative law judge.
Microsoft's acquisition of Activision "would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business," according to an FTC statement.
The FTC's lawsuit specifically calls out Microsoft's previous acquisition of Bethesda Softworks parent company Zenimax, saying it's part of a "record of acquiring and using valuable gaming content to suppress competition from rival consoles." The decision to make Bethesda's upcoming Starfield and Redfall exclusive to Microsoft platforms came "despite assurances [Microsoft] had given to European antitrust authorities that it had no incentive to withhold games from rival consoles."