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FTC Takes On Microsoft In Battle To Block Activision Blizzard Acquisition

Updated: Feb 21

FTC takes on Microsoft in battle against Activision Blizzard acquisition

The Federal Trade Commission (FTC) has announced that it is seeking to block Microsoft Corporation's acquisition of Activision Blizzard, Inc.

Activision Blizzard is a leading video game publisher and developer, responsible for popular franchises such as Call of Duty, World of Warcraft, and Overwatch. Microsoft, on the other hand, is a tech giant with a long history in the software and hardware industry, including the production of the Xbox gaming console.

The FTC's concern with the acquisition is that it could potentially lead to higher prices and reduced innovation in the video game industry. The FTC noted that the combination of Microsoft and Activision Blizzard would create a dominant gaming platform with the ability and incentive to raise prices, reduce output, and reduce the quality and range of video game offerings.

There has been a lot of speculation about the potential impact of Microsoft's acquisition of Activision Blizzard. Some have argued that the acquisition could lead to higher prices for video games and reduced innovation in the industry, as Microsoft would have a dominant market position and the incentive to raise prices and reduce the quality and range of video game offerings.

Others have argued that the acquisition could bring benefits to both companies and consumers. Microsoft has stated that the acquisition will allow it to invest more in gaming and bring new innovations to the industry. Some have pointed out that Microsoft's deep pockets and expertise in technology could help Activision Blizzard develop more advanced and immersive gaming experiences for players.

It's worth noting that the FTC's decision to seek to block the acquisition does not necessarily mean that it will be successful in doing so. The acquisition still needs to be approved by regulators, and it's possible that Microsoft and Activision Blizzard could make changes to the deal in order to address the FTC's concerns.

Regardless of the outcome, this case is sure to be closely watched by both the tech and gaming industries, as it could set a precedent for future mergers and acquisitions in these sectors. The FTC's efforts to block the acquisition will likely have significant implications for the industry as a whole and could potentially shape the future of the video game market.


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