Why did FTC block Microsoft?

In a complaint issued today, the FTC pointed to Microsoft's record of acquiring and using valuable gaming content to suppress competition from rival consoles, including its acquisition of ZeniMax, parent company of Bethesda Softworks (a well-known game developer).

Why is the FTC trying to block Microsoft?

The FTC's argument against Microsoft is that by acquiring Activision Blizzard it would “substantially lessen competition” in the “relevant market,” per antitrust law as laid out in the Clayton Act.

Did FTC block Microsoft from buying Activision?

Microsoft Says FTC Violates The Constitution By Blocking Activision Blizzard Acquisition - Game Informer.

Why is Activision suing Microsoft?

The lawsuit filed in a US federal court says the $69bn (£56bn) deal by the Xbox console maker to purchase its rival will "create a monopoly in the video game industry". The complaint comes two weeks after US regulators filed a case with an administrative judge to block the deal.

Why is FTC suing Activision?

The Federal Trade Commission said it is suing to block Microsoft's planned $69 billion takeover of video game company Activision Blizzard, saying it could suppress competitors to Microsoft's Xbox game consoles and its growing games subscription business.

FTC Seeks to Block Microsoft-Activision Deal

Why did Microsoft overpay for Activision?

Most people think that Microsoft overpaid with the $70 billion price tag on Activision Blizzard. Not necessarily. People tend to look at this as a consolidation deal, where Microsoft buying a company at a decline, which is not. The important point of the deal was to facilitate Category Acceleration.

Who is winning the Activision deal?

On Feb. 8, the U.K.'s Competition and Markets Authority announced it had “provisionally concluded” its investigation into Microsoft's acquisition of Activision Blizzard, and decided the deal could harm competition in the games market in a way that would have an impact on gamers.

What happens if Microsoft buys Activision?

It's a lot of cash, but it would make Microsoft the owners of Call of Duty, World of Warcraft, Overwatch and Candy Crush, to name a few. Those are some of the world's most popular video games, with millions of players who spend billions on subscriptions and in-game purchases.

What would happen if Microsoft bought Activision?

Microsoft specifically chose Activision Blizzard for a reason. Activision Blizzard own the Call of Duty franchise, one of the biggest in gaming history. If Microsoft's acquisition deal closes, they will own the Call of Duty series, and be able to do whatever they want with it on their Xbox systems going forward.

Who is trying to sue Microsoft?

Microsoft Corp was hit on Tuesday in US court with a private consumer lawsuit claiming the technology company's $69 billion bid to purchase “Call of Duty” maker Activision Blizzard Inc will unlawfully squelch competition in the video game industry.

Is the US government suing Microsoft?

Topline. The Federal Trade Commission filed a lawsuit against Microsoft on Thursday to block its $69 billion acquisition of video game giant Activision Blizzard, arguing the company could stifle competition, as Microsoft looks to compete with gaming giants Nintendo and Sony.

How much is Microsoft being sued for?

Microsoft Sued by Gamers Over $69 Billion Activision Deal (2)

How does FTC block mergers?

Bureau lawyers, along with economists from the FTC's Bureau of Economics, investigate market dynamics to determine if the proposed merger will harm consumers. When necessary, the FTC may take formal legal action to stop the merger, either in federal court or before an FTC administrative law judge.

What is FTC and why it is complaining?

About the FTC

Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity. Learn more about the FTC.

What is the point of the FTC?

The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation.

What will Microsoft do with Call of Duty?

Microsoft says it will bring Call of Duty to Nintendo for 10 years.

What does Microsoft buying Activision mean for gamers?

The deal would grant Microsoft ownership over globally recognized franchises like Call of Duty, World of Warcraft, and Candy Crush, to name a few. It also creates a new division in the company, Microsoft Gaming, to be led by the company's head of its Xbox division, Phil Spencer.

Is the Activision deal finalized?

Microsoft acquisition of Activision to be finalised by June 2023.

How long will it take for Microsoft to own Activision?

Microsoft's planned acquisition of Activision Blizzard, which is a leading developer and publisher of console, online, and mobile games is expected to be completed in June of 2023.

How many companies does Microsoft own?

The company, cofounded by Bill Gates in 1975, made its first acquisition in 1987 and hasn't slowed down, with approximately 269 deals under its belt to this day.

Is Microsoft still buying Blizzard?

Microsoft has suffered several major setbacks in its proposed acquisition of Activision Blizzard, with both the UK Competition and Markets Authority (CMA), and the US Federal Trade Commission (FTC) providing new hurdles for the deal's completion at the tail end of 2022.

Does Microsoft own Bethesda now?

With the buyout, Microsoft now owns a number of additional studios, including Bethesda Game Studios, id Software, ZeniMax Online Studios, Arkane, MachineGames, Tango Gameworks, Alpha Dog, and Roundhouse Studios.

Will Microsoft still buy Activision?

Microsoft announced plans to acquire Activision Blizzard for $68.7 billion in January, with the goal of closing it by June 2023.

What game makes Activision the most money?

Using data from Sensor Tower and AppMagic, Mobilegamer.biz found out which mobile titles were the main revenue drivers for Activision Blizzard in Q3 2022. Candy Crush Saga remained the highest-grossing game, generating $316.8 million in the third quarter.

What are the odds of Microsoft acquiring Activision?

Microsoft acquisition of Activision remains 'less than 50-50' chance amid FTC lawsuit: Analyst. CFRA Vice President of Equity Research John Freeman reacts to the outlook of Microsoft's long-awaited acquisition of Activision-Blizzard when weighed against the FTC's latest antitrust lawsuit against the tech company.