FTC sues to block Microsoft-Activision merger

The Federal Trade Commission is suing to block Microsoft’s planned $69B takeover of video game company Activision Blizzard, saying that it "could suppress competitors to its Xbox game consoles and its growing games subscription business." The FTC voted 3-1 to "issue the complaint after a closed-door meeting." The FTC’s complaint points to Microsoft’s "previous game acquisitions, especially of well-known developer Bethesda Softworks and its parent company ZeniMax," as an example of where Microsoft "made some popular game titles exclusive despite assuring European regulators it had no intention to do so." Microsoft President Brad Smith in a statement suggested that the company is "likely to challenge the FTC’s decision." The deal also is "under close scrutiny" in the European Union and the U.K., where investigations "aren’t due to be completed until next year" (AP, 12/8).