2023-06-13 13:44:02
- Michael Reese
- Business Correspondent – BBC News
Activision Blizzard has sold more than 400 million copies of Call of Duty over the past 20 years.
US Federal Trade Commission regulators have asked a California court to block Microsoft’s acquisition of Activision Blizzard, the video game company.
Microsoft is seeking to acquire the maker of “Call of Duty” and “Candy Crush” in a deal worth up to $69 billion.
The US Federal Trade Commission said the deal, which would be the largest in the history of the video game industry, might “significantly reduce the level of competition” in this vital sector.
Trial sessions will begin next August in the United States.
The FTC also said in its memorandum issued to the court that “an initial injunction is strictly necessary … in order to temporarily prevent any harm,” while the regulator determines whether or not “the proposed acquisition violates US antitrust law.” “.
The proposed deal has divided the authorities responsible, as it needs the approval of regulators in the United Kingdom, the European Union and the United States to complete.
Last month, the European Commission approved the acquisition, saying Microsoft offered free 10-year licensing deals to European consumers and cloud services for streaming Activision games on PC and consoles, meaning there would be fair competition in the market.
And last April, the British Competition and Markets Authority objected to the acquisition deal, saying it was concerned that the deal would limit the options of players in the fast-growing cloud gaming sector, and its potential impact on undermining innovation.
Microsoft and Activision criticized the decision, and the two companies announced their intention to appeal it.
While Microsoft President Brad Smith said that the competition authority’s objection to this deal was the company’s “darkest day” in four decades of operating in the United Kingdom.
Responding to the FTC’s announcement, Smith said Microsoft welcomes “the opportunity to present our case in federal court,” in an effort to persuade US regulators to allow the deal to proceed.
Smith added: “We believe that accelerating the legal process in the United States will eventually provide more choice and competition in the market.”
William Kovacic, former head of the US Federal Trade Commission and non-executive director of the British Competition and Markets Authority, said that the Trade Commission had expressed concerns that Microsoft and Activision would succeed in completing their deal, despite the opposition of the United Kingdom, so the commission asked a judge The court stopped it.
“It was a bit surprising that the European Union decided to make a settlement,” Kovacic told the BBC’s “Wake Up to Money” radio show.
He also said there was still a chance to complete the acquisition, but added that “the window of opportunity is diminishing”.
For Microsoft, this deal, in addition to the large investment, is of great importance, given that the company wants to strengthen its position in the gaming market in the future, and is trying to catch up with its main competitor, Sony.
However, the deal might affect the future of video games, as Microsoft is betting that cloud computing technology will provide an opportunity for a kind of “Netflix gaming” where you stream games rather than own them – the main way to access games at the moment.
Microsoft has its own GamePass service, which gives gamers access to a full suite of games for a monthly subscription.
1686670494
#government #opposes #Microsofts #acquisition #game #maker #Call #Duty