WASHINGTON, Dec. 9 (BNA): The Federal Trade Commission filed a lawsuit Thursday to block Microsoft’s planned $69 billion acquisition of video game company Activision Blizzard, saying it could block competitors to Microsoft’s Xbox gaming platform and its growing subscription business. in games.
The challenge for the Federal Trade Commission could be a test case for President Joe Biden’s mandate to scrutinize major tech mergers, according to the Associated Press.
The committee voted 3-1 to release the complaint after a closed meeting, with the three Democratic commissioners voting in favor and the lone Republican voting against.
The complaint points to Microsoft’s past game acquisitions, particularly popular developer Bethesda Softworks and parent company ZeniMax, as an example of where Microsoft is offering some upcoming game titles exclusively for Xbox despite reassuring European regulators that it has no intention of doing so.
“Microsoft has already shown that it can and will withhold content from its gaming competitors,” said a prepared statement from Holly Vidova, director of the Federal Trade Commission’s Office of Competition.
“Today we seek to prevent Microsoft from taking control of a leading independent game studio and using it to damage competition in dynamic and fast-growing game markets.”
The FTC said it was moving the complaint through its administrative process rather than taking the case to federal court. According to the complaint, the administrative law judge decided to hear the evidence but not until August 2023.
Microsoft President Brad Smith indicated in a statement Thursday that the company is likely to challenge the FTC’s action.
The company has been ramping up its public defense of the deal in recent days while it awaits a decision. Smith said Microsoft is committed to addressing competition concerns and submitted the proposed concessions to the Federal Trade Commission earlier this week.
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