FTC Cites Xbox's Exclusive Games As Strong Case Against Microsoft, Activision Blizzard Merger

The U.S. Federal Trade Commission (FTC) has submitted a new document that emphasized Microsoft Corp.'s MSFT post-acquisition conduct involving ZeniMax and Bethesda as "powerful evidence" against the company's intended acquisition of Activision Blizzard Inc ATVI.

This filing was submitted in the midst of the upcoming legal battle over the FTC's request for a preliminary injunction, with a hearing set to take place on June 22.

In preparation for the hearing, Microsoft, Activision and the FTC were afforded the chance to present their perspectives on the issue.

See Also: Xbox's Head Phil Spencer On The Microsoft-Activision Deal: 'I'm Confident We'll Find Solutions'

The FTC's filing pointed to Microsoft's willingness to make games Xbox exclusive as a key argument against the $68.7 billion acquisition of Activision Blizzard. It highlighted Microsoft's concerns about "infuriating gamers" by limiting access to Activision content, which did not deter the company's decision with the ZeniMax acquisition.

"Defendants put great stock in Microsoft's concerns about 'infuriating gamers' if it were to foreclose rivals' access to Activision content... But those same concerns did not stop the ZeniMax decision," the FTC's document reads, as reported by IGN.

The text makes reference to the recently released and Xbox-exclusive Redfall, as well as the upcoming Starfield.

The FTC also mentioned Call of Duty, saying it had evidence to contradict Microsoft and Activision Blizzard's argument that "most PlayStation gamers do not play [Call of Duty] at all." However, the evidence the antitrust regulator has was redacted in the publicly released version of the document.

On June 13, the FTC sued to block the acquisition stating the deal would hurt consumer choice and competition.

Microsoft's struggle to secure the merger has been going on for over a year, facing resistance from both the FTC and the UK's Competition and Markets Authority (CMA). At present, Microsoft is appealing the CMA's decision to reject the deal.

It's worth noting the deadline for the Microsoft and Activision Blizzard deal to conclude is July 18, 2023, after which the involved parties will be required to engage in renegotiations if the deal remains unresolved.

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