FTC seeks to block Microsoft’s bid for Activision Blizzard

The U.S. Federal Trade Commission (FTC) has filed suit seeking to block Microsoft’s deal to acquire video-game developer and publisher Activision Blizzard for $68.7 billion.

Agency alleges that maker of Xbox would gain control of top video game franchises, enabling it to harm competition in high-performance gaming consoles and subscription services by denying or degrading rivals’ access to its popular content /2

— FTC (@FTC) December 8, 2022

The FTC described the deal as “the largest in Microsoft’s history and in the gaming industry.” It argued that the acquisition would lead to anti-competitive conduct, price manipulation and harm to consumers.

“The purchase of the developer would enable Microsoft to stifle rivals in Xbox console gaming and the fast-growing subscription and cloud-gaming business,” the statement said.

In January, the corporation announced the acquisition of Activision Blizzard and said that this would “provide building blocks for creating a metaverse.” In an open letter to employees, the CEO of the game publisher, Bobby Kotick, noted that together the two companies would be better positioned to compete with other market participants for leadership as virtual worlds evolve.

In August, Xbox boss Phil Spencer expressed interest in developing virtual worlds. He said that gamers have been in metaverses for the past 30 years.

In September, Microsoft’s venture fund M12 invested in the Web3-platform Space and Time in a $20 million round.

Earlier, founder Bill Gates said that within two to three years most virtual meetings will take place in metaverses.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.