If the deal goes through, Microsoft will have an unfair edge in mobile, subscription, and cloud services.
Following Sony, Google and NVIDIA have “raised concerns” to the US Federal Trade Commission (FTC) about Microsoft’s proposed $69 billion acquisition of Call of Duty developer Activision Blizzard.
According to a source, Google and NVIDIA have informed the FTC that the combination will give Microsoft an unfair edge in mobile, subscription, and cloud services. Although Google protested the arrangement, NVIDIA remained neutral and emphasized the need for equitable access to games for all providers.
NVIDIA’s GeForce Now streaming service for games competes with Microsoft’s cloud solutions, and as Eurogamer points out, Microsoft was one of the firms who objected to NVIDIA’s acquisition of ARM, which finally fell through. Google’s Stadia game streaming service will be discontinued on January 18, although it will continue to compete with Microsoft in online store offerings through its Play Store for Android.
It was recently found that Microsoft may be developing an Xbox-branded shop for mobile devices. The information was discovered through a file to the UK Competition and Markets Authority (CMA).
Three different regulatory agencies are looking into the transaction. To thwart the arrangement, the US Federal Trade Commission launched a case against Microsoft in December 2022, while the European Union handed out surveys to game makers, distributors, and the general public.
Along with Microsoft, Sony is the main competitor in the video game console market. It is concerned about Microsoft’s stewardship of the valuable Call of Duty franchise following the acquisition. Microsoft announced the acquisition in January 2022 but has since faced opposition from a growing number of critics. It must complete the transaction by July 18 or face a $3 billion penalty if it does not.