US tries to stop Microsoft from buying Activision

The US took steps to prevent tech giant Microsoft from buying Activision Blizzard, which is also the producer of Call of Duty, for $69 billion as part of its plans to catch up with its competitors by expanding its portfolio of games.

Microsoft announced in January that it would buy Acitivision Blizzard, which develops computer games, for $68.7 billion in cash. If this deal happens, it will be the biggest acquisition in the industry.

‘TO AVOID DAMAGE TO THE INDUSTRY’

If Microsoft can’t buy Activision, which includes various console, mobile and computer games, it may struggle to entice its users to become members of its gaming platform.

Membership services are becoming more important to big tech companies as revenue streams like ad sales become less and less reliable.

Holly Vedova, head of the US Federal Trade Commission’s (FTC) competition unit, said: “We know that Microsoft has been withholding some content from rival game companies up to this point. “Our goal is to prevent Microsoft from damaging a fast-growing and dynamic industry by taking control of an independent gaming platform.” (Reuters)