2023-06-13 01:06:14
The biggest deal in video game history could be on hold. The U.S. competition authority, the FTC, on Monday asked a San Francisco court to temporarily block Microsoft’s $68.7 billion acquisition of Activision Blizzard.
The European Commission approved the transaction last month, which would make the computer giant the world’s third largest player in video games, while their British counterpart vetoed in the name of competition in the market for dematerialized games (cloud gaming). .
The FTC had already launched an administrative procedure to determine the risks associated with this acquisition, and a hearing is scheduled for early August, but press articles have circulated “suggesting that (Microsoft and Activision) were seriously considering completing the acquisition” despite this procedure and the prohibition of the CMA, the British authority, notes Monday’s summary.
” Take over “
“The proposed transaction would allow Microsoft to continue to take control of high-value video games,” argues the FTC. “By controlling Activision’s content, Microsoft could, and would have an incentive to, withhold that content, or lower its quality in a way that weakens competition, including in terms of quality, price, and innovation,” says the federal agency.
Microsoft, for its part, assured “welcome this opportunity positively” to present its arguments before a judge, according to an official reaction from Brad Smith, the president of the group, which owns the Xbox console. “We believe that speeding up the legal process in the United States will ultimately bring more choice and competition to the marketplace,” he added.
Activision Blizzard has several video game phenomena in its purse, from “Call of Duty” to “Candy Crush” via “World of Warcraft”, “Diablo”, and “Overwatch”. “If the transaction takes place, it will be the largest in the history of the video game industry and also in the history of Microsoft,” the FTC said.
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