London Daily

Focus on the big picture.
Saturday, Jul 19, 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
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
×