The American competition authority, the FTC, filed a complaint on Thursday December 8 to block the takeover for 69 billion dollars (65 billion euros) of Activision Blizzard, publisher of successful video games like Call of Dutypar Microsoft.
If the transaction were to be completed, Microsoft, maker of the Xbox console and owner of several development studios, “would gain control over top franchises”, explains the agency in a press release. That “would harm competition in high-performance game consoles and subscription services by denying or degrading rivals’ access to its popular content”she adds.
The FTC takes for example the behavior of Microsoft following the acquisition of a more modest publisher, ZeniMax, parent company of Bethesda Softworks. Once the operation was finalized, Microsoft decided to reserve the exclusivity of games like Starfield following having nevertheless assured the European competition authorities that the company had no interest in not distributing the games on competing consoles, argues the agency.
An investigation opened by the European Commission
But Activision, which has 154 million monthly active users worldwide and produces some of the most iconic video games, “is one of the few video game developers in the world to create and publish high-quality video games for multiple devices, including video game consoles, PCs and mobile devices”points out the FTC. “That might change if the takeover deal is cleared”says the agency.
“We continue to believe this agreement will broaden competition and create more opportunities for gamers and game developers”responded a Microsoft spokesperson in a message to Agence France-Presse, pointing out that the group had offered concessions to the FTC. “We have complete confidence in our case and look forward to presenting our case in court”he added.
The operation is also in the sights of Brussels, which opened an investigation in early November in-depth on its effects. The European Commission, guardian of competition in the European Union, then explained that it feared that Microsoft might “lock access to Activision Blizzard video games” for consoles and PC and that it is tempted to set up “strategies for the eviction of competing distributors”.
Such strategies might lead “higher prices, lower quality and reduced innovation”as well as a weakening of competition in the market for PC operating systems, argued the Commission.
