The Federal Trade Commission (FTC) recently warned Microsoft that its proposed acquisition of Activision Blizzard could reduce competition in the video game industry. The FTC has expressed concerns that the acquisition could lead to higher prices, reduced quality, and fewer choices for consumers.

Microsoft announced in September 2019 that it was planning to purchase Activision Blizzard, one of the world’s largest video game companies. The company owns popular franchises such as Call of Duty, World of Warcraft, and Overwatch. The acquisition would make Microsoft one of the largest players in the video game industry.

The FTC has raised concerns that the acquisition could lead to a decrease in competition in the video game industry. The FTC believes that Microsoft’s ownership of Activision Blizzard would give the company too much control over the market, allowing it to raise prices and reduce quality. The FTC also believes that the acquisition could lead to fewer choices for consumers, as Microsoft would be able to control which games are released and how they are marketed.

The FTC is currently reviewing the proposed acquisition and is expected to make a decision in the coming months. If the FTC approves the acquisition, Microsoft will be able to move forward with its plans. However, if the FTC finds that the acquisition would reduce competition, it could block the deal or require Microsoft to make changes to ensure that competition is not reduced.

The FTC’s warning is an important reminder that companies must be careful when considering acquisitions that could potentially reduce competition. Companies should always consider the potential impact on consumers when making decisions about acquisitions and mergers. The FTC’s warning also serves as a reminder that the agency is closely monitoring acquisitions in order to protect consumers from anti-competitive practices.