The Federal Trade Commission has officially sued Microsoft in an attempt to block the company’s $69 billion acquisition of video game publisher Activision Blizzard. The lawsuit, filed on Thursday, December 8, claims that the deal will make Microsoft too strong a competitor in the video game industry and will ultimately prevent competition. The lawsuit came as a bit of a surprise, like politics said the FTC is likely file an antitrust complaint against Microsoft end of last month.
According to the report of washington articles, the lawsuit represents “the FTC’s most significant attempt to rein in consolidation in the tech industry.” This news follows the appointment of Lina Kahn, a prominent academic and technology critic, to the chair of the FTC, and is in line with her mission to “open a new era of antitrust enforcement.” “. Microsoft reportedly did not perceive such a “serious legal threat to its business” in more than 20 years, when the Justice Department launched an antitrust lawsuit against the company.
According to The Washington Post, this lawsuit could end Microsoft’s purchase of Activision Blizzard. Announced earlier this year, this purchase will give the company ownership of brands such as Call of Duty, Diablo, Overwatch, League of Legends, and Candy Crush.
Throughout this process, Microsoft has repeatedly tried to reassure the public that exclusivity was not its intent in this acquisition. The company has reportedly assured that the Call of Duty franchise will remained on the PlayStation platform for a decadeand will Also coming to Nintendo consoles if the deal is approved. However, the FTC claims the acquisition still gives Microsoft an unfair advantage and could “reduce innovation in these nascent gaming markets”.
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