Beautiful Virgin Islands

Thursday, Mar 23, 2023

Microsoft $69bn takeover of Call of Duty maker Activision Blizzard challenged by US watchdog

Microsoft $69bn takeover of Call of Duty maker Activision Blizzard challenged by US watchdog

The Federal Trade Commission says the tech giant has a record of hoarding valuable gaming content, but the firm vows to fight the action and expresses "complete confidence" in its case.

A US competition watchdog has moved to block Microsoft's $69bn (£56bn) bid to buy Call of Duty maker Activision Blizzard.

The action by the Federal Trade Commission (FTC) threatens the tech giant's plans to rapidly expand its portfolio of games and catch up with rivals.

Microsoft, which owns the Xbox console and game network platform, said the planned record-breaking deal announced back in January would help it compete with industry leaders Tencent and Sony PlayStation, which have both criticised the takeover.

Without Activision and its variety of games across mobile, consoles and PCs, the company could struggle to attract users to its subscription service for accessing games.

Signing up subscribers has become a priority for big tech firms as traditional growth areas such as ad sales becomes less reliable.

In its complaint, the commission, which enforces competition law, said Microsoft had a record of hoarding valuable gaming content.

It points to Microsoft's previous game acquisitions, especially of well-known developer Bethesda Softworks and its parent company ZeniMax, as an example of where the company is making some upcoming game titles exclusive to Xbox despite assuring European regulators it had no intention to do so.

Holly Vedova, director of the FTC's Bureau of Competition, said: "Microsoft has already shown that it can and will withhold content from its gaming rivals.

"Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets."

The agency set a hearing before an administrative law judge for August 2023.


Call Of Duty and Candy Crush are among Activision's games

Microsoft boss Brad Smith vowed to fight the move.

He said: "While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court."

US President Joe Biden's administration has taken a more aggressive approach to enforcement of competition laws.

The US Department of Justice recently stopped a $2.2bn (£1.7bn) merger of Penguin Random House, the world's largest book publisher, and smaller US rival Simon & Schuster.

The FTC said it was concerned that Activision's popular games, including World of Warcraft and Diablo, would not continue to be offered on a range of consoles, PCs and mobile devices.

While Microsoft has suggested concessions to address competition concerns, the rapid pace of change in the tech and gaming industries could render those conditions useless over time.

This month, in another move to avert criticism, Microsoft entered into a 10-year commitment to offer Call of Duty, the popular first-person shooter series, to Nintendo platforms.

Microsoft also made the same offer to Sony.

Microsoft owns the Xbox console and game network platform.

Activision Blizzard CEO Bobby Kotick told staff on Thursday that he was confident that the deal would go forward.

"The allegation that this deal is anti-competitive doesn't align with the facts, and we believe we'll win this challenge," he said.

He believed the companies' arguments would succeed "despite a regulatory environment focused on ideology and misconceptions about the tech industry".

The deal also faces scrutiny in the UK and Brussels.

An investigation by the UK's Competitions and Markets Authority (CMA) was announced in July, and in September the watchdog decided there were enough issues to move the inquiry into a second phase.

In October, the public were invited to give its views on the buyout.

The CMA is working to a deadline of March 2023 to publish its final report.

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Donald Trump arrested – Twitter goes wild with doctored pictures
I have a dream, MLK inspiring speech
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Aretha Franklin, Marvis Staples - Oh Happy Day
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
BVI Freedom Song
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Billy Preston - You Can't Beat God Giving (Live)
Paris Rioting vs Macron anti democratic law
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
'Sexual Fantasy' Assignment At US School Outrages Parents
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Credit Suisse to borrow $54 billion from Swiss central bank
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Russian Hackers Preparing New Cyber Assault Against Ukraine
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Hello Dolly
If this was in Tehran, Moscow or Hong Kong
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Nashville police officer, and a female driver shooting one another
Bob Marley - Get Up Stand Up
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Yes He Can
Mexican President Claims Mexico is Safer than the U.S.
What A Friend We Have In Jesus
A brief banking situation report
Unforgettable
Lady bites police officer and gets instantly reaction
Touch The Hem Of His Garment
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
The Lord's Prayer
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
THE GOD MOVEMENT...BEAUTIFUL BVI
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Siyahamba
Silicon Valley Bank exec was Lehman Brothers CFO
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Ramblin' Rose
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Protoje - Who Knows ft. Chronixx
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
Pressure - Virgin Islands Nice
Elon Musk Is Planning To Build A Town In Texas For His Employees
Phil Wickham - House Of The Lord
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
My God Is Real (Yes, God Is Real)
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
Fitness scam
Louis Armstrong - When The Saints Go Marching In
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Kanye West Sunday Service - hallelujah, salvation, and glory
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Jonathan Nelson - I Believe (Island Medley
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
From The Virgin Islands Sqad Up
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Common, John Legend - Glory
Banking regulators close SVB, the largest bank failure since the financial crisis
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
I have a dream, MLK inspiring speech
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Aretha Franklin, Marvis Staples - Oh Happy Day
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
BVI Freedom Song
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Billy Preston - You Can't Beat God Giving (Live)
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
It's the question on everyone's lips: could a four-day workweek be the future of employment?
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Hello Dolly
Spain officials quit over trains that were too wide for tunnels...
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
×