In a move that has surprised the gaming industry, the US Federal Trade Commission (FTC) has announced its intention to file an injunction that will block Microsoft’s proposed acquisition of Activision Blizzard. The deal, worth a staggering $69 billion, has already been approved by the European Union but hit a snag with British competition authorities earlier this year.
According to the FTC, allowing the acquisition to go ahead would result in Microsoft’s Xbox gaining exclusive access to Activision games. This, in turn, would leave rival consoles, such as Nintendo and Sony’s PlayStation, out in the cold. The FTC argues that this would create an unfair monopoly for Microsoft and contravene antitrust regulations.
Microsoft, however, remains upbeat about the acquisition and has offered to sign a legally binding consent decree with the FTC. This would pledge to provide Call of Duty games to rivals, including Sony, for the next ten years. In a statement, Microsoft president Brad Smith welcomed the opportunity to present their case in federal court and outlined the many benefits it could bring to the gaming industry.
Despite Microsoft’s assurances, the FTC has been firm in its stance and has mounted a muscular challenge to block the deal. Antitrust experts, however, have suggested that the FTC has a tough uphill battle to convince a judge to stop the acquisition. This is because Microsoft has made voluntary concessions to allay any fears of domination in the gaming market.
It remains to be seen whether the court will allow the acquisition to go ahead, but Microsoft and the gaming industry will be watching closely. In the meantime, gamers around the world await the outcome with bated breath.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
