UPDATE 8pm: Microsoft has responded to the FTC’s announcement of a lawsuit to block its $69bn acquisition of Activision Blizzard.
“We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” Microsoft’s vice chair and president Brad Smith said in a statement. “We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC.”
“While we believed in giving peace a chance,” Smith concluded, “we have complete confidence in our case and welcome the opportunity to present our case in court.”
ORIGINAL STORY 7.30pm: The United States government’s Federal Trade Commission is suing to block Microsoft’s $69bn USD acquisition of Activision Blizzard, claiming the deal would allow the company to suppress its games industry competition.
In a news release announcing the lawsuit, the FTC pointed to Microsoft’s acquisition of ZeniMax in 2021, and the company’s subsequent decision to make games from its subsidiaries – namely Bethesda’s Starfield and Redfall – exclusive to Microsoft devices, despite previously assuring European regulators it had no incentive to withhold games from rival consoles.