The Trade Commission considers that the acquisition would reduce competition in the market for console games and game subscription services.
of the United States trade commission FTC seeks to block software giant Microsoft’s acquisition of game company Activision Blizzard.
In its announcement, the Commission considers that the acquisition would reduce competition in the market for Xbox console games and game subscription services.
The FTC decided on the issue by a vote of 3–1. The agency oversees competition in the US market.
The competition effects of Microsoft’s Activision Blizzard deal are also being investigated by the European Commission and the British Competition Authority.
Read more: The EU Commission starts an investigation into Microsoft’s intention to buy the game company Activision Blizzard
Director of the FTC Holly Vedova says in the agency’s press release that Microsoft has a history of business acquisitions in the gaming industry, with which it has stifled competition in game consoles.
According to Vedova, the agency therefore wants to prevent Microsoft from taking over the industry’s leading game studio and from using the company to harm competition in the game market.
Trade Commission note that Microsoft manufactures both Xbox game consoles and offers a leading game subscription service called Xbox Game Pass.
According to the FTC, Activision Blizzard is one of the few game companies that develops games for multiple devices, such as game consoles, PCs and mobile devices.
Microsoft announced a US$69 billion bid for Activision Blizzard in January. Activision Blizzard is known Call of Duty – as a game series developer.
By buying Activision Blizzard, Microsoft is trying to create the world’s third largest gaming company by revenue.
Japan’s Sony, which manufactures the Playstation console that competes with Xbox, has been particularly concerned about the acquisition.
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