- This week Microsoft explained its plans to make Call of Duty accessible on Nintendo devices to demonstrate why its purchase of Activision Blizzard is a good thing.
- The move has done little to win over the Federal Trade Commission in the US, which is seeking to sue Microsoft.
- The FTC says the Xbox maker would gain too much control in the gaming industry if the deal went through.
The Federal Trade Commission (FTC) in the US has done what Americans are best known for – filing lawsuits. This particular one looks to block what would be one of the biggest deals the industry has ever seen, as it wants to stop Microsoft from completing its acquisition of Activision Blizzard.
Announced at the beginning of the year, the proposed deal has faced mounting opposition, particularly as it pertains the potential power that Microsoft would wield in the industry if it were to be done.
This as Activision Blizzard holds many high-value properties, the biggest of which at the moment is Call of Duty, which is currently available on a number of different platforms.
Earlier this week, Microsoft announced that it would make Call of Duty available on all Nintendo devices as a way to showcase its desire to play nicely with the other gaming companies.
The tactic did little to convince the FTC, however, with the regulatory body citing the already growing presence of Microsoft with its Game Pass offerings, not to mention the future titles it has made exclusive to its own platforms, as reasons why the deal should not come to pass.
“The Federal Trade Commission is seeking to block technology giant Microsoft Corp. from acquiring leading video game developer Activision Blizzard, Inc. and its blockbuster gaming franchises such as Call of Duty, alleging that the $69 billion deal, Microsoft’s largest ever and the largest ever in the video gaming industry, would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business,” the FTC explained in a press release.
“In a complaint issued today, the FTC pointed to Microsoft’s record of acquiring and using valuable gaming content to suppress competition from rival consoles, including its acquisition of ZeniMax, parent company of Bethesda Softworks (a well-known game developer). Microsoft decided to make several of Bethesda’s titles including Starfield and Redfall Microsoft exclusives despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles,” it added.
With pressure also mounting for Microsoft in the EU and UK, where regulators are also investigating its deal, the lawsuit from the FTC puts a massive spanner in the works.
At the time of writing, Microsoft is yet to comment on the matter, but it will likely look to fight the lawsuit. Should it face similar legal action on other territories, however, it will be a true test of its desire to acquire Activision Blizzard, which still has a toxic culture at its own company to sort out.
[Image – Photo by the blowup on Unsplash]