FTC Reportedly Sued Microsoft To Stop Negotiations With EU Regulators

FTC Doesn't Want EU To Accept The Deal!

Microsoft is facing hurdle after hurdle in the Activision Blizzard deal. Just before the new year, Chile approved the merger in phase 1, so things were looking better for Microsoft. But FTC still didn’t have any plans to let Microsoft achieve the union, so before Chile fully approved the deal, Microsoft claimed that FTC’s approach to the acquisition was unconstitutional.

The company has been working hard to make this deal work, but it faced the threat of an EU antitrust warning over the acquisition. FTC has reportedly sued Microsoft to stop the EU from accepting a settlement over the deal.

According to some people familiar with the investigations, Bloomberg reported that the FTC filed a complaint quicker than expected. The main reason for this complaint was to stop any possible negotiations between EU regulators and Microsoft about the settlement. 

Fried Frank Harris Shriver & Jacobson LLP’s antitrust head Barry Nigro told Bloomberg that the lawsuit filed will likely get out in front of the Europeans to shape the narrative.

Microsoft Activision Blizzard

According to the report, the FTC filed the complaint just hours after both planned to discuss the settlement. It cannot be a coincidence, but it indeed seems unreal. The FTC wasn’t expected to act until the spring, and it was told to Bloomberg that in such situations, before acting, the settlement terms should be first known globally.

The FTC doesn’t have any plans to let Microsoft do the merger, as the director of FTC’s Bureau of Competition, Holly Vedova, said: 

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova. “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”

Microsft has no plans to leave the deal, as the company has been facing problems since the agreement started. This $69 billion is Microsft’s largest deal in the video gaming industry, but FTC thinks this will give Microsft the upper hand in the console market.

For now, we can’t say for sure what will happen to this merger as this is going nowhere like this, and there is something going on every month. This controversy is likely to increase even more, so we can only hope things improve as Google and Nvidia are also concerned about this deal. 

Aside from that, what do you think Microsoft facing hurdle after hurdle due to this acquisition? What is the best strategy for Microsoft here? Please share your thoughts with us in the comments section. 

Check Out More News: Redfall Officially Coming On 2nd May; System Requirements & Gameplay.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Obaid Ur Rehman
Obaid Ur Rehman
Obaid is pursuing a Law degree, while working as a content writer. He has worked as a gaming writer for over a year because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.

Latest News

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Follow Us

83,972FansLike
32,122FollowersFollow

Trending

Activision Blizzard Acquisition Provisionally Approved By The CMA

The CMA has provisionally approved Microsoft's acquisition of Activision Blizzard, and further decisions will be made after 6 October.

Payday 3 Dev Issues Apology For Extremely Flawed Launch

A terrible launch has prompted Tobias Sjögren, the CEO of the Payday 3 developer, to extend an apology to the fans publicly.

Third Star Wars Jedi Game in the Works, Confirms Cal Kestis Actor

A Star Wars Jedi: Survivor sequel has been officially confirmed by the voice actor of Cal Kestis, the protagonist of the series.

Cyberpunk 2077 Resurgence Leads To 115K Concurrent Players On Steam

Cyberpunk 2077 is back in the spotlight after months of anticipation for Phantom Liberty and the massive overhaul to the core game.

Starfield Moves Beyond 10 Million Players In Less Than One Month

Following several accomplishments over the last few days, Starfield has reached over 10 million players across all platforms.