As the FTC moves ahead with legal action following in the footsteps of the U.K. government, the EU has approved the merger following assurances by Microsoft that the deal won’t disrupt the competition. Microsoft, meanwhile, offered to keep “Call Duty” on rival platforms for the next decade, a deal that was accepted by Nintendo and rejected by Sony.
Circling back to the FTC’s concerns, it claims that Microsoft’s acquisition could have wide-ranging implications including, but not limited to, “dampened innovation, diminished consumer choice, higher prices, and/or lower quality products, and harm to the millions of Americans who benefit from competition in video game consoles and subscription services.”
It also flags concerns that the merger would not only disrupt the market for gaming consoles, but also give Microsoft an undue advantage when it comes to game subscription services like the Xbox Game Pass, and cloud-based game streaming services. A court trial over the FTC’s concerns is scheduled for early August. In its complaint, the FTC requested a court-issued block as well as an injunction because it alleges that Microsoft and Activision Blizzard could close the deal later this week.
Responding to the FTC action, Microsoft President Brad Smith tweeted that the legal move will “accelerate the decision-making process.” Smith expressed confidence in Microsoft’s vision, which includes assurances that the company has no immediate plans to make Activision Blizzard games exclusive to its own platform and that no anti-competitive tactics are on the Xbox division’s roadmap.
