Edited By: Shaurya Sharma
Last Updated: January 14, 2023, 18:05 IST
The FTC is concerned that Microsoft’s acquisition of Activision Blizzard could negatively impact competition in the gaming industry.
Google and Nvidia have voiced their concerns to the Federal Trade Commission (FTC) in the United States, aligning themselves with Sony over Microsoft’s $68.7 billion acquisition of Activision Blizzard.
Google and Nvidia have joined Sony in expressing their concerns to the Federal Trade Commission (FTC) in the United States regarding Microsoft’s $68.7 billion acquisition of Activision Blizzard.
The FTC is concerned that Microsoft’s acquisition of Activision Blizzard could negatively impact competition in the gaming industry. They argue that the deal would grant Microsoft an unfair advantage by giving them control over a wide range of franchises. In light of this, the FTC has scheduled an in-house trial for August, during which either company could be called to testify, as per a recent Bloomberg report.
In order to bolster their argument that Microsoft’s acquisition of Activision Blizzard would give them an unfair edge in the cloud, subscription, and mobile gaming markets, Google and Nvidia have submitted evidences to the FTC.
When giving information to the FTC about Microsoft’s acquisition of Activision Blizzard, Nvidia, being a market leader in graphics cards and the owner of the streaming service GeForce Now, emphasized the importance of equal access to gaming titles. Google, creator of Stadia cloud gaming platform, too, has expressed concerns.
The acquisition would be anti-competitive, according to Sony, whose PlayStation console is the main competitor to Microsoft’s Xbox gaming brand. Microsoft has been eager to offer various deals—including its offer to PlayStation—offering a 10-year contract to get the latest releases of Call of Duty titles.
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