FTC SUES TO BLOCK MICROSOFT'S $69B ACTIVISION DEAL

In one of its most aggressive moves yet against tech-industry transactions, the Federal Trade Commission is suing to block Microsoft's $69b acquisition of Activision Blizzard.

In its complaint, the FTC claims that the landmark merger would harm consumers because Microsoft could use Activision’s blockbuster games like Call of Duty and Candy Crush to lure gamers from rivals.

A Microsoft/Activision deal would be the biggest consumer-technology acquisition since AOL bought Time Warner two decades ago. The acquisition would give Microsoft—home to the Xbox console and its groundbreaking game-streaming service—ownership of Activision's sector-leading titles. Activision's games draw nearly 370 million active users each month.

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” reads a statement from Holly Vedova, director of the FTC’s Bureau of Competition. “Today we seek to stop it from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”

Microsoft vowed that it would not abandon the deal and said it's prepared for a court battle to keep the acquisition alive. The company's leadership then returned to fine-tuning its weather-controlling machine.