March 29, 2024

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FTC likely to sue to block Microsoft’s acquisition of Activision Blizzard – Xbox

FTC likely to sue to block Microsoft’s acquisition of Activision Blizzard – Xbox

The Federal Trade Commission will likely file an antitrust lawsuit against Microsoft and Activision Blizzard to block a planned merger deal by the two companies. worth $69 billion.

This indicates New Politico report which calls for “three.” [ανώνυμα] people who have knowledge of the subject.”

While Politico writes that the lawsuit remains “unconfirmed,” it adds that FTC officials are “concerned by the companies’ arguments” that the deal would be anticompetitive. The sources also confirmed that many of the relevant procedures in the committee’s investigation have been completed, and that the lawsuit can be filed as early as next month.

Sony, the main competitor to Microsoft’s proposed purchase, has publicly argued that the existing three-year contractual guarantee to keep Call of Duty on PlayStation is “inadequate on several levels”. In response, Microsoft president Phil Spencer publicly promised that Call of Duty would continue to be available on PlayStation from day one of every new release, “as long as there’s a PlayStation out there.” However, it is not clear whether the two companies registered this offer as a legal agreement. New York times Report Microsoft this week offered a 10-year deal to keep Call of Duty on PlayStation.

Numerous statements from Microsoft executives, including Spencer, indicate that the company is less interested in strengthening its position in the “console war” and more interested in strengthening smartphones, cloud gaming, and its Game Pass subscription platform. After Call of Duty, Politico reported that the FTC was concerned about how Microsoft could “leverage unannounced titles in the future to further its gaming business.”

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Company spokesperson David Cody told Politico that Microsoft “is prepared to address the concerns of regulators, including the FTC and Sony, to ensure that the transaction is completed confidentially.” “We will continue to follow Sony and Tencent in the market after the deal closes in terms of market share. Together, Xbox and Activision-Blizzard will benefit gamers and developers and make the industry more competitive.”

Reports of a potential Federal Trade Commission (FTC) lawsuit add to a growing list disturbing samples About the proposed purchase by various international governments. Earlier this month, the European Commission said it had launched an in-depth investigation into the deal. In the UK, a similar investigation by the country’s Competition and Markets Authority is due next month. Those international investigations are expected to be completed in March, ensuring that the proposed deal is not completed before then, giving the FTC time before a potential lawsuit is filed.