Science and Tech

The FTC will try to block Microsoft from buying Activision

The Activision Blizzard purchase attempt has been one of Microsoft’s biggest headaches. A few weeks ago, the UK’s Competition and Markets Authority (CMA) blocked the transaction due to concerns of possible monopolies.

Specifically, the CMA said that Microsoft can take advantage of the cloud and mobile gaming sectors because they are two of the most important to the future of the industry.

However, along the way Xbox has found allies. In mid-May, the European Union (EU) approved the purchase after regulators said its offer of 10-year free license deals to gamers and cloud streaming rivals effectively addressed their concerns.

The European Commission said the purchase did not affect competition due to Microsoft’s licensing agreements, through which the company that owns Xbox will allow franchises like Call of Duty to be on Nintendo and Sony platforms, among others.

Such licenses are “practical and effective,” EU antitrust chief Margrethe Vestager said. “Actually, they significantly improve the condition for cloud game streaming compared to the current situation, so we consider them pro-competitive,” she added.

Other antitrust watchdogs that have approved the purchase include Saudi Arabia, Brazil, Chile, Serbia, Japan and South Africa have already approved the deal, while other countries including China, South Korea, New Zealand and Australia are still reviewing it.



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