Friday, December 9th 2022
FTC Seeks to Block Microsoft's Acquisition of Activision Blizzard
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.
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.
"Microsoft has already shown that it can and will withhold content from its gaming rivals," said Holly Vedova, Director of the FTC's Bureau of Competition. "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 Xbox Series S and Series X are one of only two types of high performance video game consoles. Importantly, Microsoft also offers a leading video game content subscription service called Xbox Game Pass, as well as a cutting-edge cloud-based video game streaming service, according to the complaint.
Activision 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, including video game consoles, PCs, and mobile devices. It produces some of the most iconic and popular video game titles, including Call of Duty, World of Warcraft, Diablo, and Overwatch, and has millions of monthly active users around the world, according to the FTC's complaint. Activision currently has a strategy of offering its games on many devices regardless of producer.
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.
The Commission vote to issue the complaint was 3-1, with Commissioner Christine S. Wilson voting no. A copy of the administrative complaint will be available shortly.
NOTE: The Commission issues an administrative complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of the administrative complaint marks the beginning of a proceeding in which the allegations will be tried in a formal hearing before an administrative law judge.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint. For the latest news and resources, follow the FTC on social media, subscribe to press releases and read our blog.
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.
Microsoft's Xbox Series S and Series X are one of only two types of high performance video game consoles. Importantly, Microsoft also offers a leading video game content subscription service called Xbox Game Pass, as well as a cutting-edge cloud-based video game streaming service, according to the complaint.
Activision 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, including video game consoles, PCs, and mobile devices. It produces some of the most iconic and popular video game titles, including Call of Duty, World of Warcraft, Diablo, and Overwatch, and has millions of monthly active users around the world, according to the FTC's complaint. Activision currently has a strategy of offering its games on many devices regardless of producer.
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.
The Commission vote to issue the complaint was 3-1, with Commissioner Christine S. Wilson voting no. A copy of the administrative complaint will be available shortly.
NOTE: The Commission issues an administrative complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of the administrative complaint marks the beginning of a proceeding in which the allegations will be tried in a formal hearing before an administrative law judge.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint. For the latest news and resources, follow the FTC on social media, subscribe to press releases and read our blog.
52 Comments on FTC Seeks to Block Microsoft's Acquisition of Activision Blizzard
Consolidation of power into a handful of companies in any industry is never good for the consumer. This should be obvious for PC hardware enthusiasts on this website (See 2 corporations owning 99% of the discrete GPU market, and the GPU price creep as a result).
We are the consumers; this would not be good for us. There's not much more to be said.
So it's not as simple as "it's a Japanese company" and besides, any company at this scale should be considered de facto global.
As for the FTC intervention, going by the argument that it's just because of sony (it's not), the FTC has to regulate and ensure fair competition in the US market, Sony is a major player in the US market so it really doesn't matter if they are American or not for the FTC intervention.
fuck off ftc
Modding was and still is PC first too & their games literally still float on mod support. They dont even bugfix proper, they just copy over what modders fixed and release it as yet another Skyrim
www.afkmods.com/Unofficial%20Skyrim%20Special%20Edition%20Patch%20Version%20History.html
Whatever the f**k happened to "If you run your company like dogs**t wrapped in cats**t, don't be surprised when you'll see it go down the s**tter" ??
BTW...ABK financially is actually doing just fine. Xbox division on the other hand.... :banghead:
Great job, let the investors rejoice!
...and also an anti thrust violation
It would be beneficial for all those that have GamePass (I think it is one of the rare subscriptions that are worth their money, especially if you do not have your game library already).
They offered CoD to be still on PlayStationfor next 10 years . If they (MS) going to create/publish new IP, how is that different than when Sony has exclusives?
And the fact we get some of those Sony exclusives couple of years later on PC is because Sony wants more money, not because they "love" PC gamers.
I call this BS and it will be bad for Activision in the long run (as it seems they do not have the management that is up to the task vs MS who has). Which will,eventually be bad for the same folks FTC is trying to protect here.
Gamepass is good value only because MS is burning money like no tomorrow to grow their customer base. Consoles being sold with silly losses and gamepass is likely not profitable on it’s own. Good for the consumer for sure though, just don’t go thinking 10 years ahead thinking that it’s going to stay that way.
And Blizzard? They are long past their prime...
would love to see new starcraft content under supevision of microsoft
Imagine steam trying to buy sonys Playstation division, there'd be immediate suspicion they plan to shut down playstation as the world knows it and have the PS6 a steam box in disguise
If Steam started buying studios the problem would be the same.