Thursday, May 2, 2024

Google, Nvidia Aren’t Happy About Microsoft’s Activision Blizzard Deal

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It’s not just Sony who doesn’t like the idea of Microsoft acquiring Activision Blizzard. Google and Nvidia have told the Federal Trade Commission (FTC) they are concerned, too.

As Bloomberg reports(Opens in a new window), Nvidia has told the FTC that equal and open access to games is very important, but didn’t go so far as to oppose the acquisition going ahead. Google has also submitted its concerns over the deal, which apparently back the FTC’s current stance that the acquisition could allow Microsoft an unfair advantage in the cloud, subscription, and mobile gaming markets.

Back in December, the FTC sued to stop the $68.7 billion acquisition going ahead, with the main concern being Microsoft would “deny or degrade” Activision Blizzard games from appearing on rival platforms, which would hurt consumers. The FTC also pointed to Microsoft’s previous acquisition of Zenimax/Bethesda as an example of “using valuable gaming content to suppress competition from rival consoles.”

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The situation didn’t look very positive for Microsoft when the FTC lawsuit was first announced, but Google and Nvidia stepping up to express concerns now makes the deal look even less likely. Microsoft has vowed to fight the FTC in court, and is also awaiting the outcome of investigations by the UK government and the EU. Whatever happens next, Microsoft needs all regulators to be happy before July otherwise the terms of the deal state it would need to be renegotiated with Activision Blizzard.

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