The FTC accused Microsoft of exploiting its “record of acquiring and using valuable gaming content” to stave off competition from other systems in the case. The agency backs it claims by giving the example of the $7.5 billion purchase of ZeniMax, the parent firm of Bethesda Softworks, a video game producer. In that instance, despite reassurances it had provided to European antitrust regulators that it had no motive to withhold games from competing systems, Microsoft “decided to make many of Bethesda’s titles, including ‘Starfield’ and ‘Redfall’ Microsoft exclusives.” The FTC continues by stating that Activision Blizzard is “one of only a very small number of top video game developers in the world that create and publish high-quality video games for multiple devices,” before recognising that the publisher’s games, which include Call of Duty, Overwatch, and World of Warcraft, each have 154 million active monthly users. The following is what Activision Blizzard COO Lulu Cheng Meservey had to say about the FTC’s case despite the fact that Microsoft has not yet formally responded to the allegations: But that could change if the deal is allowed to proceed. With control over Activision’s blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely, resulting in harm to consumers.”
We look forward to proving our case in court and closing our deal with Microsoft — Lulu Cheng Meservey (@lulumeservey) December 8, 2022 The Activision Blizzard purchase would give Microsoft an unfair edge and discourage investment in fields like gaming subscription services and cloud gaming, according to the Washington Post’s story on the FTC’s case. The FTC is the first regulatory body to make an effort to stop Microsoft’s purchase of Activision Blizzard; the transaction has previously been authorised by several other nations, including Saudi Arabia and Brazil. However, both the UK and Europe are still closely monitoring the purchase, and early next year, each regulatory agency is scheduled to separately reveal the results of a more “in-depth” phase 2 evaluation of the plan.
