Federal Trade Commission (abbreviated FTC) has been and continues to be the most vocal critic of Microsoft’s acquisition of Activision Blizzard. The merger of two large companies is a thorn in the side of the regulator, which is closely monitoring the next steps in challenging the merger.
The Federal Trade Commission is targeting recent Game Pass Changes. Microsoft is increasing the price of the service, removing the console tariff and promising a new level of the standard. In the eyes of the agency, this worsens the quality of the product, since it does not include games released on the day of release, for example, this fall. Call of Duty: Black Ops 6which Microsoft acquired in the deal. These actions by Microsoft, according to the FTC, contradict promises and evidence that Microsoft and Activision Blizzard merger hurts competition and hurts consumersHe also recalls that earlier this year, Microsoft laid off nearly 2,000 people in new teams.
They must be all of this. characteristics of a firm exercising its market power after a merger. In this regard, the department recalls how Microsoft stated during the court case last summer that the addition of Activision Blizzard games would not increase the price of Game Pass. It also promised that the acquisition would benefit consumers, as CoD would be available as part of Game Pass on the day of its release on consoles (without increasing the price of the service due to the acquisition).
However, according to the FTC and some analysts, the release of Call of Duty: Black Ops 6 is causing a price hike and the cancellation of the standalone subscription for consoles. This will be the only console option that includes Black Ops 6 as part of the subscription. Xbox Game Pass Ultimate for $20 per month (439 CZK here, 18 EUR in Slovakia). For current subscribers, the new prices will apply from 12/09/2024, and Black Ops 6 will be released on 10/25/2024.
The Federal Trade Commission requires preliminary synthesis stopto allow time to assess its likely impact on competition. However, at this point we do not know when the court will rule.
As a reminder, the FTC lost last year and the acquisition deal closed on 10/13/2023. But the agency has filed an appeal and is trying to prove that the courts were wrong. Do you think it has a chance of success? In my opinion, it will be very difficult to prove that Microsoft is making changes to Game Pass specifically because of the addition of Call of Duty. Its lawyers can argue that competition also makes it more expensive. Although this is the second time in recent memory that Game Pass has increased in price, the last time was a year ago. A month later, Sony increased its rates PlayStation Plus.
Incidentally, since the acquisition of Activision Blizzard, Game Pass has been expanded to include only Diablo IV. Hopefully, more games will be added in the coming weeks and months. Expect Crash Bandicoot N. Sane Trilogy, Spyro Reignited Trilogy, Tony Hawk’s Pro Skater 1+2, or last year’s Call of Duty: Modern Warfare 3.
Source :Indian TV
