US moves to block Microsoft's Activision takeover:
The US Federal Trade Commission (FTC) said the deal, which would be the largest in the history of the video games industry, could "substantially lessen competition" in the sector.
The move comes after the UK blocked the deal over concerns it would hurt competition, but the EU approved it.
A trial in the US will begin in August.
The FTC said in a court filing that a "preliminary injunction is necessary to... prevent interim harm" while the regulator determines whether "the proposed acquisition violates US antitrust law".
Microsoft's proposed takeover of Activision has split global regulators, and in order for the deal to go through the parties need approval from regulatory bodies in the UK, the EU and the US.
The European Commission has approved the acquisition, saying that Microsoft's offer of 10-year free licensing deals - which promise European consumers and cloud game streaming services access to Activision's PC and console games - mean there would be fair competition in the market.
But the UK's Competition and Markets Authority (CMA) blocked the deal in April, saying it was concerned the takeover would offer reduced innovation and less choice for gamers.
Microsoft and Activision hit out at the decision and said they would appeal.
Related Stories
For months now, Microsoft has sworn up and down that it has no interest in making Call of Duty exclusive to the Xbox if and when its proposed $69 billion Activision acquisition is approved. But as the FTC's request for an injunction stopping that acquisition heads toward opening arguments this week, the federal regulator cites one piece of what it calls "powerful evidence" that it can't trust Microsoft's assurances. In short, as the FTC puts it, "Microsoft's actions following its 2021 acquisition of ZeniMax speak louder than Defendants' words."
[...]
Rather than focusing on what it calls a "strained analogy" to ZeniMax, Microsoft would prefer the court look at Microsoft's purchase of Minecraft-maker Mojang, which has continued to publish the game on a variety of platforms after becoming part of Microsoft. This is a better analogy for Call of Duty, Microsoft writes, because Minecraft was similarly "an existing, multi-player, cross-platform franchise like COD."
[...]
Call of Duty is unlike Minecraft, the FTC argues, in part because Minecraft is available in largely the same form on mobile phones, tablets, and the Switch. "Even if Microsoft took Minecraft off of rival consoles and subscription and cloud gaming services, it would still be available for play on many other devices. The context for Call of Duty is very different."Regardless, the FTC also argues that this manufactured categorization doesn't matter, because Microsoft's exclusivity decision applied to "all future ZeniMax games." While Microsoft said in 2021 that "some" future Bethesda games would be Xbox exclusives, no Bethesda non-exclusives have been announced since then.
Previously:
US Moves to Block Microsoft's Activision Takeover - 20230613
Microsoft and Activision Will Miss Their Contractual Merger Deadline - 20230115
FTC Moves to Block Microsoft's Activision Acquisition - 20221209
The Biggest Deal in Gaming is Under Fire From U.S. Senators - 20220403
Related:
Microsoft Acquires ZeniMax Media and Bethesda Softworks for $7.5 Billion - 20200921
(Score: 2) by Frosty Piss on Wednesday June 14 2023, @08:48PM (1 child)
Activision has in all practical aspects been a subsidiary of Microsoft for years if not always.
(Score: 1, Funny) by XivLacuna on Wednesday June 14 2023, @09:04PM
I just wish Activision could offload Blizzard to Microsoft so we could get World of Warcraft subscriptions on Game Pass and rescue the IPs from Bobby Kotick.
(Score: 2, Interesting) by Gaaark on Wednesday June 14 2023, @10:08PM (5 children)
Someone in the US FTC finally get some balls?
--- Please remind me if I haven't been civil to you: I'm channeling MDC. I have always been here. ---Gaaark 2.0 --
(Score: 2, Disagree) by Frosty Piss on Wednesday June 14 2023, @11:41PM (4 children)
Balls? Hardly. The acquisition of Activision by Microsoft would have little or no decernable effect on competition whatsoever. Activision is and always has been a Microsoft shop, and their absorbsion would not stifle other shops from introducing Windows games. A lot of MS hate here is purely emotional.
(Score: 5, Insightful) by Gaaark on Thursday June 15 2023, @12:00AM
You new here? (I know you're not, lol)
MS hate is WELL EARNED by MS.
Linux is a toy operating system.
Linux is a cancer.
We love Linux... while doing everything possible to waterboard linux.
Etc etc etc.
That teh FTC is FINALLY standing up and kicking MS a bit is what is out-standing.
No emotions: just acknowledging that the FTC/anti-trust is finally doing it's job.
--- Please remind me if I haven't been civil to you: I'm channeling MDC. I have always been here. ---Gaaark 2.0 --
(Score: 2) by GloomMower on Thursday June 15 2023, @12:33AM (2 children)
Activision releases on Sony and Nintendo consoles (not just xbox and windows). Also King (part of activision) which publishes a lot of mobile games on non-microsoft mobile devices.
(Score: 2) by ikanreed on Thursday June 15 2023, @12:51AM (1 child)
I don't forsee activision bringing Windows Mobile back with hit King(tm) games.
(Score: 3, Funny) by GloomMower on Thursday June 15 2023, @04:24AM
What about games that only run on surface duo 2 or the next one?