Why is the FTC Blocking Microsoft-Activision Deal?
The antitrust case initiated by the Federal Trade Commission (FTC) is seeking to block Microsoft’s $69 billion acquisition of Activision Blizzard, claiming that it would reduce competition in the gaming market and create a dominant player that can harm players and gamers at large.
FTC’s Reasons for Blocking the Deal
The FTC believes that a combined Microsoft and Activision Blizzard would hurt competition by:
• Restricting access to game franchises
• Increasing subscription fees and prices for Xbox users
• Reducing innovation by limiting new gamers’ exposure to games they wouldn’t have been to access with Activision as a major player in the industry.
• Gushing out valuable data from online players from Activision-Blizzard games
The FTC notes that a big game developers like Microsoft wouldn’t leave the small business unattractive but its biggest issue is how far will people go when forced to share their sensitive user data the FTC will use a range of antitrust lawsuits against many tech firms after an investigative report released at a joint hearing. To combat monopoly, many federal regulatory efforts are on trial for trying to address unfair competitive disparities.
Regulatory Agency’s Wording on Decision
" We’re of the view the Microsoft takeover of Activision Blizzard gives Microsoft immense grip on one of the popular games globally, thus curtailing growth and creating stiff opposition."
" In doing this our goal will not to crush tech growth in today’s Digital Age and innovation and all that which keeps this ecosystem alive.
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Conclusio (Conclusion) And Microsoft Side
On Oct.11,2020 Microsoft purchased 49 Percent share price of shares bought on Feb.6.
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And In-Table
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