Google and Nvidia have both officially joined the fight against Microsoft’s proposed A$99 billion takeover of gaming giant Activision Blizzard, expressing concerns to the Federal Trade Commission about the deal.
The FTC hardly need convincing, given they sued last month in order to block the deal.
According to Bloomberg sources, who requested anonymity due to the confidential nature of the probe, Google and Nividia provided information that backs the FTC’s major claim “that Microsoft could gain an unfair advantage in the market for cloud, subscription and mobile gaming.”
Activision’s tentpole titles, such as Call of Duty and World of Warcraft, are major drawcards for gamers; regulators fear that Microsoft’s acquisition of such titles will result in them blackballing competitors and launching Activision games exclusively on XBox.
Although Microsoft has made moves to assure regulators it plans to honour deals to keep on Sony PlayStation and Nintendo Switch consoles, the future beyond the current generation of consoles remains undefined.
Microsoft’s Xbox Game Pass, which boasts 25 million subscribers, thrives by keeping titles such as the Halo franchise and the most recent Minecraft, from competing services.
Nvidia “stressed the need for equal and open access to game titles” to the FTC.
Representations from Google and Nvidia are now likely to be called to testify at the FTC’s in-house trial, scheduled for August.
Both companies are major players in the gaming world.
Although Google’s failed cloud console, Stadia, shut last month – the Android mobile system is still key to the entire mobile gaming world, while the Play Store is a major POS for gaming.
Hardware aside, Nvidia’s GeForce Now cloud gaming service launched in 2020 and already has 20 million subscribers, with over 1,400 available titles.
Holly Vedova, director of the FTC’s Bureau of Competition, said last month that “Microsoft has already shown that it can and will withhold content from its gaming rivals.”
“We seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”
Microsoft President Brad Smith said: “We continue to believe that this deal will expand competition and create more opportunities for gamers and game developers.
“We have complete confidence in our case and welcome the opportunity to present our case in court,” he added.
The FTC has scheduled its in-house trial to begin on August 2, 2023.