Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 9 (Xinhua)-- the Federal Trade Commission (FTC) is ready to reject Microsoft's acquisition of video game company Activision Blizzard because of concerns that popular games will become exclusive to Xbox and will not be open to other platforms.

Microsoft announced in January 2022 that it plans to buy Activision Blizzard for $68.7 billion, making it the largest acquisition in the gaming industry. CTOnews.com learned that popular games such as call of Duty, World of Warcraft and Candy Legend were written by Activision Blizzard.

The Federal Trade Commission voted 3:1 on Thursday after a closed-door meeting, with three Democratic commissioners in favor and the only Republican against.

The Federal Trade Commission believes that Microsoft's acquisition of Activision Blizzard could crack down on competitors in Xbox consoles and allow Microsoft's Xbox game subscription business to grow rapidly.

The FTC believes that Microsoft has a precedent for buying valuable game content and using the game monopoly to curb competition with other game platforms. British regulators also said that Microsoft's acquisition could significantly reduce competition for game consoles, multi-game subscription services and cloud gaming services.

Holly Vedova, FTC Competition Director, said: "Microsoft has made it clear that it can and will withhold the content of its game competitors. We seek to prevent Microsoft from gaining control of a leading independent game studio and use it to damage competition in multiple dynamic and fast-growing game markets."

Microsoft President Brad Brad Smith said Microsoft would continue to lobby the Federal Trade Commission. "although we believe in giving peace a chance, we have full confidence in our acquisition and hope to have the opportunity to present our views in court," he said.

CTOnews.com learned that Activision Blizzard's shares fell 3 per cent in intraday trading on the back of the negative news.

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