The FTC is suing Microsoft to block its Activision Blizzard purchase / It’s a major challenge to Microsoft’s planned $68.7 billion acquisition of the massive gaming company.

TL;DR

The lawsuit was filed today after weeks of back and forth between Microsoft, Sony, and regulators over competition concerns and the future of Call of Duty.“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.”“We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers,” Brad Smith, Microsoft’s vice chair and president, said in a statement to The Verge.“We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC.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.”The company’s corporate vice president of communications, Frank X. Shaw, also tweeted a link to a document titled: “Get The Facts: How Microsoft is Committed to Growing Gaming Communities.”In a letter to Activision Blizzard employees, CEO Bobby Kotick told staff that he wants to “reinforce my confidence” that the acquisition will close.“It’s as excited about this deal as Blockbuster was about the rise of Netflix.” Microsoft also described the UK’s Competition and Markets Authority (CMA) concerns as “misplaced” and accused the regulator of adopting “Sony’s complaints without considering the potential harm to consumers.”Microsoft has also accused Sony of paying developers to keep their content off of its Xbox Game Pass service, and Sony has even argued that Microsoft’s Activision Blizzard acquisition could “hurt developers and lead to price rises.”Update December 8th, 5:34PM ET: Added FTC complaint."

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