London Daily

Focus on the big picture.
Friday, Aug 08, 2025

Microsoft $69bn takeover of Call of Duty maker Activision Blizzard challenged by US watchdog

Microsoft $69bn takeover of Call of Duty maker Activision Blizzard challenged by US watchdog

The Federal Trade Commission says the tech giant has a record of hoarding valuable gaming content, but the firm vows to fight the action and expresses "complete confidence" in its case.

A US competition watchdog has moved to block Microsoft's $69bn (£56bn) bid to buy Call of Duty maker Activision Blizzard.

The action by the Federal Trade Commission (FTC) threatens the tech giant's plans to rapidly expand its portfolio of games and catch up with rivals.

Microsoft, which owns the Xbox console and game network platform, said the planned record-breaking deal announced back in January would help it compete with industry leaders Tencent and Sony PlayStation, which have both criticised the takeover.

Without Activision and its variety of games across mobile, consoles and PCs, the company could struggle to attract users to its subscription service for accessing games.

Signing up subscribers has become a priority for big tech firms as traditional growth areas such as ad sales becomes less reliable.

In its complaint, the commission, which enforces competition law, said Microsoft had a record of hoarding valuable gaming content.

It points to Microsoft's previous game acquisitions, especially of well-known developer Bethesda Softworks and its parent company ZeniMax, as an example of where the company is making some upcoming game titles exclusive to Xbox despite assuring European regulators it had no intention to do so.

Holly Vedova, director of the FTC's Bureau of Competition, said: "Microsoft has already shown that it can and will withhold content from its gaming rivals.

"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."

The agency set a hearing before an administrative law judge for August 2023.


Call Of Duty and Candy Crush are among Activision's games

Microsoft boss Brad Smith vowed to fight the move.

He said: "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."

US President Joe Biden's administration has taken a more aggressive approach to enforcement of competition laws.

The US Department of Justice recently stopped a $2.2bn (£1.7bn) merger of Penguin Random House, the world's largest book publisher, and smaller US rival Simon & Schuster.

The FTC said it was concerned that Activision's popular games, including World of Warcraft and Diablo, would not continue to be offered on a range of consoles, PCs and mobile devices.

While Microsoft has suggested concessions to address competition concerns, the rapid pace of change in the tech and gaming industries could render those conditions useless over time.

This month, in another move to avert criticism, Microsoft entered into a 10-year commitment to offer Call of Duty, the popular first-person shooter series, to Nintendo platforms.

Microsoft also made the same offer to Sony.

Microsoft owns the Xbox console and game network platform.

Activision Blizzard CEO Bobby Kotick told staff on Thursday that he was confident that the deal would go forward.

"The allegation that this deal is anti-competitive doesn't align with the facts, and we believe we'll win this challenge," he said.

He believed the companies' arguments would succeed "despite a regulatory environment focused on ideology and misconceptions about the tech industry".

The deal also faces scrutiny in the UK and Brussels.

An investigation by the UK's Competitions and Markets Authority (CMA) was announced in July, and in September the watchdog decided there were enough issues to move the inquiry into a second phase.

In October, the public were invited to give its views on the buyout.

The CMA is working to a deadline of March 2023 to publish its final report.

Newsletter

Related Articles

0:00
0:00
Close
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
OpenAI Launches GPT‑5, Its Most Advanced AI Model Yet
Embarrassment in Britain: Homelessness Minister Evicted Tenants and Forced to Resign
President Trump nominated Stephen Miran, his top economic adviser and a critic of the Federal Reserve, to temporarily fill an open Fed seat
The AI-Powered Education Revolution: Market Potential and Transformative Impact
Chikungunya Virus Outbreak in Southern China: Over 7,000 Hospitalized
French wine makers have seen catastrophic damage to vines that were almost ready to be harvested after the worst fires in more than 70 years burned through the south of the country
US Lawmaker Probes Intel CEO’s China Ties Amid National Security Concerns
Brazilian President Lula says he’ll contact the leaders of BRICS states to propose a unified response to U.S. tariffs
Trump Open to Meeting Putin as Soon as Next Week, with Possible Trilateral Summit Including Zelenskiy
Katy Perry and Justin Trudeau spark dating rumors, joining high stakes world of celeb-politician romances
US envoy Steve Witkoff arrived in Moscow to seek a breakthrough in the Ukraine war ahead of President Trump’s peace deadline
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Karol Nawrocki Inaugurated as Poland’s President, Setting Stage for Clash with Tusk Government
Trump Signals JD Vance as ‘Most Likely’ MAGA Successor for 2028
US Charges Two Chinese Nationals for Illegal Nvidia AI Chip Exports
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
U.S. Tariff Policy Triggers Market Volatility Amid Growing Global Trade Tensions
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
Representative Greene Urges H-1B Visa Cuts Amid U.S.-India Trade Tensions
U.S. House Committee Subpoenas Clintons and Senior Officials in Epstein Investigation
Sydney Sweeney Registered as Republican as Controversial American Eagle Ad Sparks Debate
Trump Accuses Major Banks of Politically Motivated Account Denials and Prepares Executive Order
TikTok Removes Huda Kattan Video Over Anti-Israel Conspiracy Claims
Trump Threatens Tariffs on India Over Russian Oil Imports
German Finance Minister Criticizes Trump’s Attacks on Institutions
U.S. Proposes Visa Bond of Up to $15,000 for Some Applicants
U.S. Farmers Increase Lobbying Amid Immigration Crackdown
Elon Musk Receives $23.7 Billion Tesla Stock Award
Texas House Paralyzed After Democrats Walk Out Over Redistricting
Mexican Cartels Complicate Sheinbaum’s U.S. Security Talks
Mark Zuckerberg Declares War on the iPhone
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
Tesla Seeks Shareholder Approval for $29 Billion Compensation Package for Elon Musk
Nvidia is cutting prices on its RTX 50-series graphics cards after sales slowed and inventories piled up
Ghislaine Maxwell Transferred to Minimum-Security Prison Amid Ongoing DOJ Discussions
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Matt Taibbi Slams Media for Role in Russiagate Narrative
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
×