US asks Justice to block sale of Activision to Microsoft

According to the FTC, harming consumers, because it would allow Microsoft to undermine competition in the video game industry by continuing to control major Activision-developed franchises such as “Warcraft”, “Call of Duty” and “Candy Crush”.

Control of tech giants

The lawsuit marks one of the strongest actions taken by US regulators in recent years. Leverage the power of tech giants.

Microsoft announced last February that it had acquired Activision, the largest acquisition in the history of the American company, the largest operation of its kind seen in the world of video games, and one of the oldest, for approximately $69,000 million. technology in general.

With Activision, Microsoft predicted Being the third company in the video game industryonly behind Tencent and Sony.

The merger was being investigated by regulators from different countries, but the FTC was the first to officially speak out and opposes it to the operation.

“Today we are trying to prevent Microsoft from taking control of the largest independent game studio and harming competition in various markets video game “It’s dynamic and growing fast,” Holly Vedova, director of the FTC’s Bureau of Competition, said in a statement.

According to the US regulator, the tech company has in the past tried to limit access to content with its competitors in the video game industry and only offers games from companies it acquired on Xbox consoles and its own subscription service.

The FTC points out that with the acquisition of Activision it can do the same with some of the world’s most popular games, including ‘Call of Duty’, ‘World of Warcraft’, ‘Diablo’ and ‘Overwatch’. currently available for different devices.

It will also have the ability to: Manipulating Activision pricesdelay access to games for other platforms or worsen the gaming experience on other consoles.

In recent months, Microsoft has tried to appease regulators with some measures, such as giving Sony access to the “Call of Duty” game for a period of ten years or bringing it to Nintendo consoles that are not currently available if purchased. it is closed.

Microsoft continues

Microsoft does not plan to cease operation today, and He will challenge the FTC’s claims in court.

“We continue to believe this deal will broaden competition and create more opportunities for gamers and game developers,” Microsoft President Brad Smith said in a statement to various media. said.

Activision’s shares on Wall Street after FTC’s announcement experienced a clear declineIt didn’t take long for them to recoup some of the losses and they fell 1.40% 45 minutes before the stock market closed.

Meanwhile, those at Microsoft didn’t see much of an impact, posting a 1.10% gain three-quarters of an hour before the bell rang.