Microsoft's big buy of Activision may be blocked by Federal Trade Commission

The Federal Trade Commission filed a complaint on Thursday, suing Microsoft’s anticipated takeover of the video game company Activision Blizzard, valued at $69 billion.

The FTC claims the deal could give Microsoft’s Xbox game console and game subscription business an unfair advantage over its competitors.

In a press release issued by the FTC, the vote to file a complaint was 3-1, which Rep. Commissioner Christine S. Wilson voting against the measure.

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Previously, Microsoft acquired game developer Bethesda Softworks and its parent company ZeniMax. Under those platforms, Microsoft will make certain game titles exclusive to Xbox.

For example, Microsoft will make Starfield and Redfall exclusive to their platform, despite assurances it had given to European antitrust authorities that it would not, the press release read.

"Microsoft has already shown that it can and will withhold content from its gaming rivals," Holly Vedova, director of the FTC’s Bureau of Competition said in a prepared statement. "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."

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The Xbox Series S and Series X are two of Microsoft’s game consoles. The tech giant also offers the Xbox Game Pass, which is a video game content subscription service that gives gamers access to hundreds of games for a monthly fee.

According to the press release, Activision is one of only a few game developers in the world that publishes "high-quality" games for multiple devices. Call of Duty, for example, is created for Xbox, but also for PCs and the Sony PlayStation.

"It produces some of the most iconic and popular video game titles, including Call of Duty, World of Warcraft, Diablo, and Overwatch, and has millions of monthly active users around the world, according to the FTC’s complaint," the release read. "Activision currently has a strategy of offering its games on many devices regardless of producer. But that could change if the deal is allowed to proceed."

The FTC claims if Microsoft takes control of the Activision franchise, it will have the means and motive to harm competition by manipulating Activision’s pricing, degrading the game quality and player experience on rival consoles, and more.

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The release noted that the FTC issues an administrative complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of the administrative complaint marks the beginning of a proceeding in which the allegations will be tried in a formal hearing before an administrative law judge.

Fox has reached out to Microsoft for comment.