The U.S. Federal Trade Commission (FTC) has taken steps to block Microsoft’s (MSFT) $69 billion U.S. acquisition of video game maker Activision Blizzard (ATVI), saying the deal is bad for competition.
The FTC voted 3-1 in favor of filing a lawsuit to block Microsoft’s purchase of Activision Blizzard, stating that Microsoft’s ownership of Activision Blizzard could hurt other companies in the $200 billion U.S. global video game industry.
The U.S. regulator said it is concerned that Microsoft could deny access, delay availability, or degrade the quality of Activision Blizzard’s most popular video game titles should it succeed in buying the company.
Microsoft’s proposed Activision Blizzard deal is the company’s largest ever and one of the 30 biggest takeovers of all time. The transaction would give Microsoft some of the most popular video game franchises in the world, including “Call of Duty” and “World of Warcraft.”
Microsoft, which make the Xbox video game console, already owns the “Halo” and “Minecraft” video game franchises, among others.
Seattle-based Microsoft said earlier this week that it is prepared to fight in court to ensure that its acquisition of Activision Blizzard is completed as planned in the second half of 2023.
Microsoft’s stock is down 26% this year at $247.40 U.S. per share. Activision Blizzard’s stock is up 11% on the year and trading at $74.76 U.S. a share.
