Now, the corporation is unlikely to complete it by mid-2023.
The US Federal Trade Commission is going to try to block Microsoft’s purchase of Activision Blizzard through the courts. According to the FTC’s lawsuit, the Commission believes that the closing of the transaction will allow Microsoft to harm competition in the gaming market.
Gaining control of Activision Blizzard’s popular franchises would allow Microsoft to “squeeze out” its competitors in its gaming division, Xbox console, cloud gaming service and Game Pass subscriptions.
The FTC’s lawsuit mentions Starfield and Redfall, which have become exclusive to the Microsoft ecosystem. The commission believes that this action does not fit the company’s rhetoric, which stated that it has no incentive to refuse to release its games on competitors’ platforms.
Microsoft representatives responded by saying that they were confident that the deal would actually help increase competition in the gaming market. Microsoft intends to prove its point in court.
Sources earlier told Politico that the FTC could block the deal through the courts. Bloomberg sources claimed that Microsoft is prepared to sue and may eventually win the case, having received permission to make the deal.
However, the FTC suit will almost certainly seriously stall the Microsoft and Activision Blizzard deal. Even if it is eventually approved, the acquisition is unlikely to be completed by mid-2023 as Microsoft had planned.