The Federal Trade Commission on Thursday sued to block Microsoft’s $69 billion offer to purchase video game publisher Activision Blizzard, and alleges that the deal will enable them to suppress competition in gaming. Their decision is an aggressive step by competition regulators to rein in the tech industry and marks a roadblock for Microsoft’s plans of expanding their gaming reach. If the deal were to get approved it would marry Microsoft who own the Xbox console and a game streaming service, and Activison, creator of Call of Duty, Warcraft and Candy Crush.
The move represents another aggressive step taken by competition regulators to rein in consolidation of the tech industry. It marks a roadblock in Microsoft’s plans to expand its gaming arm. The deal, if approved, would’ve married Microsoft, which owns the Xbox console and a game streaming service, and Activision-Blizzard, maker of Call of Duty, Warcraft and Candy Crush.
The FTC stated that the transaction would allow Microsoft to limit competition to Xbox and its game streaming service and pointed to the tech giant’s history of acquiring competitors in order to “suppress competition from rival consoles.”
Holly Vedova, Director of the FTC’s Bureau of Competition stated, “Microsoft has already shown that it can and will withhold content from its gaming rivals, oday 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.”
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