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Friday, January 27, 2023

United States asks Justice to block Microsoft’s purchase of video game firm Activision

The United States Federal Trade Commission (FTC) announced a lawsuit this Thursday to block Microsoft’s acquisition of Activision Blizzard, one of the world’s largest video game companies, valued at approximately 69,000 million dollars.

According to the FTC, the purchase would harm consumers, as it would allow Microsoft to harm competition in the video game industry, such as taking over important franchises developed by Activision. warcraft, call of duty hey candy Crush,

The lawsuit is one of the most forceful actions taken by US regulators in recent years control power Tech giants.

Microsoft announced the purchase of Activision last February for approximately $69,000 million in cash. This will be the largest acquisition in the history of the American company. The largest operation of its kind ever seen in the world of video games and the largest in technology in general.

first regulator to speak

cone activation, Microsoft was expected to become the third company in the video game sector, behind only Tencent and Sony. The merger was under investigation by regulators in various countries, but the FTC is the first to officially speak out and does so to oppose the operation.

“Today we want to prevent Microsoft from gaining control of the largest independent game studio and hurt the competition in many fast-growing and dynamic video game markets,” Holly Vedova, director of the FTC’s Office of Competition, said in a statement.

Blizzard Expo In Shanghai.

According to the US regulator, the technology company has already demanded this Limit access to content for your competitors In the video game industry, offering games from companies it has purchased only on its Xbox console and its own subscription service.

With Activision purchase, FTC tells, it could do the same with some of the world’s most popular titles call of duty, world of Warcraft, Diablo why overwatch, which are currently offered for various devices. it will also have the capacityto manipulate Activision’s prices, Delaying access to games for other platforms or reducing the gaming experience on other consoles.

Microsoft attempts to calm things down

In recent months, Microsoft has tried to appease regulators some measurementsfor example by giving Sony access to games call of duty for a period of ten years or move it to Nintendo consoles, where it is no longer available, if the purchase was discontinued.

Microsoft announced today don’t plan to skip the operation And he will dispute the FTC’s arguments in court. “We believe this settlement will broaden competition and create more opportunities for gamers and game developers,” Microsoft President Brad Smith said in a statement sent to various media.

Following the FTC’s announcement, Shares of Activision fell markedly on Wall StreetHowever, it did not take long for them to recover part of the losses and with 45 minutes left before the close of the stock market, they fell 1.40%. Meanwhile, the folks at Microsoft didn’t see a huge impact and with three quarters of an hour left before the bell, they were gaining 1.10%.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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