FTC Sues Microsoft Over 'Unfair' Call Of Duty Deal
The frustrations around the Xbox purchase of Activision Blizzard grow by the day, and at this point, it's getting pretty irritating. At every turn, the deal has been questioned by all the possible governing boards that could be attached.
Even as Phil Spencer extends an olive branch to Nintendo in the wake of Sony kicking up a fuss about monopolising the Call of Duty franchise, it's starting to feel more and more like these intense legal proceedings are a bunch of babies getting in a scrap.
Sony wants Call of Duty because Microsoft is playing with it, while Nintendo is content with its building blocks in the corner. And now, there's a new roadblock in the deal, which is making it drag… even… further.
Why Is The US Government Suing Microsoft?
Click to enlargeTo be honest, it was only a matter of time. The Federal Trade Commission is getting involved with the Xbox deal to purchase Activision Blizzard, claiming that it dramatically suppresses Microsoft's competitors.
"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," says Director of Bureau CVompetition Holly Vedova.
"With control over Activision's blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision's pricing, degrading Activision's game quality or player experience on rival consoles and gaming services."
The scathing attack says that "changing the terms and timing of access to Activision's content, or withholding content from competitors entirely" could result in "harm to consumers."
Microsoft Responds To The FTC's Threat To Sue
Microsoft's Vice Chair and President Brad Smith has come forward with a statement to address the FTC's claims, revealing that the company is more than ready to go to court for the purchase.
"We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers," says Smith. "We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC.
"While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court." It's clear that Microsoft isn't willing to roll over and have its belly tickled on this one, so expect things to get even uglier.
Yikes. Well, it looks like the big deal is actually set to step into the courtroom. It's all getting a bit rich, and who knows if the legal action will amount to anything. We'll have to wait and see, but trust us, we bet it will be a good watch.
