The US Federal Trade Commission (FTC) is getting ready to fight Microsoft in court this week, which could be a major turning point in Microsoft's plans to buy Activision Blizzard for $69 billion. Before the hearing begins on Thursday, the FTC posted another filing that shows part of what will likely be its big argument against Microsoft purchasing the game publisher.
In its filing (PDF file) (via IGN), the FTC claims the way Microsoft handled the purchase of the studios under the ZeniMax Media company in 2021 may be a preview of how it will handle the games made by Activision Blizzard's studios. According to the highly redacted filing:
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.
That may refer to the fact that Microsoft has decided to turn two new games under ZeniMax's Bethesda Softworks banner, Redfall, and the upcoming Starfield, as console exclusives for the Xbox platform. Indeed, the FTC filing says, "Microsoft's actions following its 2021 acquisition of ZeniMax speak louder than Defendants' words."
Of course, Redfall turned out to be something of a bust in terms of its critical response. Starfield may fare better when it releases in early September, but there's no guarantee that game will be a massive hit.
Microsoft has also made commitments to bring Activision Blizzard games to many cloud gaming streaming services if the deal to purchase the publisher goes through. In particular, it stated that it had signed a 10-year agreement with Nintendo to bring future Call of Duty games to the company's consoles.
The FTC is currently seeking a preliminary injunction to halt Microsoft's purchase of Activision Blizzard before the deal is supposed to officially close on July 18. If the court rules in favor of the FTC to grant that injunction during this week's legal battle, it's possible Microsoft might have to renegotiate a deal to extend that deal deadline, or perhaps even to just cancel the deal completely.
In a separate case, lawyers representing a group of gamers that are opposed to the Microsoft/Activision Blizzard deal claim that a redacted internal email from Microsoft has evidence that the company wants to get rid of Sony's PlayStation business as a competitor. However, the actual contents of the email are unknown.
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