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The FTC (Federal Trade Commission) may file a lawsuit against Microsoft to block the purchase of Activision’s company, Engadget (via Politico) for $69 billion.
Microsoft’s offer to buy Activision Blizzard has been controversial since day one, and observers believe Microsoft could hurt competition with this purchase. The FTC began its investigation shortly after the news was made public, and now it can file a lawsuit against Microsoft and cancel the contract.
According to the original report, Microsoft cannot confirm the commission. Now it is necessary to wait for the decision of the commissioners to submit the case or arrange a meeting with the lawyers.
The FTC has not decided whether to file a complaint against Microsoft. Also, other regulators are looking into the deal.
The FTC wants to block Microsoft’s deal with Activision Blizzard
Microsoft’s purchase of Activision has also caught the eye of the UK’s Competition and Markets Authority (CMA) and the European Commission. Both companies are reviewing the deal and investigating whether it violated antitrust laws. They fear that Microsoft can gain an advantage over competitors with the agreement, which means that it can be a correct hypothesis.
As Big Tech grows bigger every year, it’s harder for small businesses to compete effectively in the market. The acquisition of Activision will allow Microsoft to acquire the company’s major intellectual property, including popular games such as Call of duty a World of Warcraft.
That’s why Sony is one of the staunch opponents of this deal. The Japanese company is worried that Microsoft could turn popular games into Xbox exclusives and deprive PS5 owners.
Jim Ryan, the CEO of Sony Entertainment America, said that Microsoft said that Call of Duty will only be kept on PlayStation for three years after the end of the current contract. However, Xbox CEO Phil Spencer said the company has no plans to port Call of Duty from PlayStation consoles. While Sony is concerned about the future of PS5 games, Microsoft said in its latest filing with the CMA that Sony has more exclusive games than the Xbox.
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