FTC sues to block Microsoft acquisition of Activision Blizzard

What you need to know

• Microsoft is attempting to purchase Activision Blizzard for $69 billion. 
• The deal is undergoing regulatory scrutiny around the world. 
• The FTC is suing to block Microsoft’s acquisition of Activision Blizzard. 
• Microsoft and Activision have indicated they will fight for the deal in court.

Microsoft’s biggest acquisition ever has hit a snag as the deal will have to be fought for in court. 

The Federal Trade Commission (FTC), the U.S. regulatory authority, announced (opens in new tab) on Thursday that it is suing to block Microsoft’s purchase of Activision Blizzard. The deal, valued at almost $69 billion, would see Microsoft add Activision Publishing, Blizzard Entertainment, and King to the existing Xbox first-party development teams.

In its press release, the FTC points to Microsoft making Starfield and Redfall exclusive games as a reason that Microsoft cannot be trusted. Both games, in development at Bethesda Game Studios and Arkane Austin respectively, are new IPs that are being developed exclusively for Xbox Series X|S and Windows PC.

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova, Director of the FTC’s Bureau of Competition. “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.”

In recent weeks, Microsoft took several steps to sway regulators that the deal was good for gaming as a whole. Microsoft worked out a neutrality deal with the Communication Workers of America (CWA), agreeing to not interfere with Activision Blizzard employees’ right to unionize starting 60 days after the acquisition closed.