The FTC is suing Microsoft to dam its Activision Blizzard buy

The FTC has filed a authorized problem to try to block Microsoft’s plan to purchase Activision Blizzard for $68.7 billion, in line with a press release from the regulator. The lawsuit was filed at this time after weeks of backwards and forwards between Microsoft, Sony, and regulators over competitors issues and the way forward for Call of Duty. The FTC argues that the acquisition would “enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business.”

The vote from the FTC commissioners at this time means Microsoft now faces important hurdles to get its Activision Blizzard deal full. Regulators within the UK and EU are additionally scrutinizing the deal intently, regardless of Microsoft’s repeated makes an attempt to appease regulators.

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” stated Holly Vedova, director of the FTC’s Bureau of Competition stated in an announcement. “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.”

Microsoft’s frustrations over Sony’s objections to its Activision Blizzard deal have been clear. “Sony has emerged as the loudest objector,” stated Microsoft president Brad Smith in a Wall Street Journal op-ed lately. “It’s as excited about this deal as Blockbuster was about the rise of Netflix.” Microsoft additionally described the UK’s Competition and Markets Authority (CMA) issues as “misplaced” and accusing the regulator of adopting “Sony’s complaints without considering the potential harm to consumers.”

Microsoft has additionally accused Sony of paying builders to maintain their content material off of its Xbox Game Pass service, and Sony has even argued that Microsoft’s Activision Blizzard acquisition might “hurt developers and lead to price rises.”