London Daily

Focus on the big picture.
Sunday, Jul 06, 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
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
×