American regulator wants to prevent takeover of Activision by Microsoft

American competition watchdogs want to block Microsoft’s largest acquisition to date. The approximately $ 69 billion purchase of video game manufacturer Activision Blizzard is in jeopardy.

The U.S. Trade and Consumer Protection Agency (FTC) has filed an antitrust suit against software giant Microsoft’s acquisition of game provider Activision Blizzard. The $69 billion acquisition would give Microsoft too much market power and hurt competition in the game console business like the Xbox, the FTC said.

The companies are behind the billion dollar deal. “We welcome the opportunity to take our case to court,” Microsoft CEO Brad Smith said in a statement to US media. His group continues to have “full confidence” in the takeover. From day one, Microsoft has addressed competition concerns and made concessions to the FTC.

Announced in January

Microsoft and Activision Blizzard announced the mega deal in January. Microsoft wanted to secure Activision Blizzard’s popular video games such as “Call of Duty”, “Overwatch”, and “Candy Crush”. The software group that operates the Xbox gaming platform already has other game studios with well-known titles such as “Doom” and “Minecraft” under its roof and would significantly strengthen its market position with its largest acquisition to date.

The deal came at a time when Activision Blizzard was under intense public pressure, including allegations of discrimination and harassment. Although CEO Bobby Kotick was also heavily criticized, he initially remained at the helm of the game company. Regarding the FTC lawsuit, Kotick said in a memo to employees, quoted by Bloomberg, “I believe we will win this challenge.”

Expected resistance

Experts had already expected resistance from the FTC to the takeover. The multi-billion dollar deal is also being scrutinized by competition watchdogs in the UK and the European Union. As recently as November, the European Commission expressed fears that the acquisition could limit Microsoft’s access to games for competitors and their consoles. Conditions for users may also deteriorate as a result. (aeg/sda/dpa)