The US FTC is suing Microsoft to stop the Activision Blizzard deal

(Image Courtesy: Microsoft)

The United States Federal Trade Commission (FTC) has filed a lawsuit against Microsoft to prevent the $68.7 billion Activision Blizzard deal from happening.

In a press release issued by the commission, it said that it seeks to stop the merger because it would enable the Redmond technology giant to mute the competition while strengthening its own console and cloud subscription offerings.

Citing the previous acquisition of ZeniMax, parent company to Bethesda Game Studios, the FTC said that Microsoft has already decided to make the studios upcoming games, Starfield and Redfall, exclusives to their platform, despite giving the European authorities assurance that it won't do so.

“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said Holly Vedova, Director of the FTC’s Bureau of Competition in the release.

“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.”

Speaking with The Verge, Microsoft's Vice Chairman and President, Brad Smith, said that the company continues to believe, "this deal will expand competition and create more opportunities for gamers and game developers."

“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,” Smith added.

If the intense scrutiny that Microsoft faces from antitrust authorities isn't enough, it also has to deal with Sony, who seems hell bent on making life as tough as possible for the company.

It even prompted the head of the Xbox division, Phil Spencer, to say, “From where we sit, it’s clear they’re spending more time with the regulators than they are with us to try and get this deal done.”