Why is the FTC suing the purchase of Activision Blizzard?

Although this week Microsoft announced a deal for Nintendo and Steam to receive Call of Duty after the acquisition of Activision Blizzard, it seems that the Federal Trade Commission (FTC) does not want to believe its promises. The US watchdog announced this week that it will sue the purchase for $69 billion.

The FTC is the primary organization in the United States charged with overseeing and policing the creation of possible monopolies and healthy competition. According to the statement released by the organization, the FTC believes the deal as it stands now would give Microsoft a significant current advantage in the console market. He also fears that the effects of this purchase could extend to other segments of the video game industry such as subscription services (Game Pass) or cloud gaming services.

“The $69 billion deal, the largest in Microsoft’s history and the largest in the video game industry, would allow Microsoft to undercut competitors in its fast-growing game consoles and cloud and subscription services,” pointed out a statement from the FTC.

The statement also clarifies Microsoft’s attitude not to make all of its games exclusive or strike deals with others publishers That’s not entirely true. For instance, the FTC states that “Microsoft has decided to make certain Bethesda games, such as Starfield and Redfall, exclusive, despite the assurances it had given to European antitrust authorities”.

What’s next for buying Activision/Blizzard?

The first thing is that buying Activision Blizzard isn’t the end of the deal, but it sure puts you in a pretty complex situation. The FTC’s statement doesn’t block the settlement itself, but it’s basically a statement that they find something problematic in the settlement and are requesting the support of other law enforcement agencies to confirm if it’s against the law. The next step is for the allegations to be heard in public discourse and then brought to an administrative game.

How does Microsoft respond to the FTC lawsuit?

Microsoft has also officially responded to the FTC’s announcement to sue the purchase. “We continue to believe this deal will broaden competition and create more opportunities for gamers and game developers. We’ve been committed since day one to addressing competition concerns, including offering proposed concessions to the FTC earlier this week,” Microsoft president Brad Smith said in a response. this acquisition.

“It sounds alarming, so I want to build my confidence that this deal will close. The accusation that this agreement is anti-competitive is not in line with the facts and we believe we will win this challenge,” she concluded.