US regulators call for Microsoft’s Call of Duty takeover to be blocked

US regulators have called for Microsoft’s £55billion takeover of Call of Duty maker Activision Blizzard to be blocked – following in the UK’s footsteps.

The US Federal Trade Commission (FTC) said the deal, which would be the largest in the history of the video games industry, could ‘substantially lessen competition’ and must be stopped.

The ruling came after the UK Competition and Markets Authority (CMA) blocked the deal in April over concerns it would hamper the growth in the sector.

Activision owns games including World Of Warcraft and Candy Crush Saga as well as Call of Duty. 

But while the decision by the CMA was greeted by howls of anger from Microsoft, the US firm was far more measured in its response to the FTC.

Concerns: The US Federal Trade Commission said Microsoft’s takeover of Call of Duty video game maker Activision could ‘substantially lessen competition’

‘We welcome the opportunity to present our case in federal court,’ said Microsoft president Brad Smith.

Simon French, head of research at Panmure Gordon, accused the company of ‘hypocrisy – pure and simple’ adding: ‘The measured response of Microsoft to the US regulator is in sharp contrast to the sniping at the UK equivalent.

‘It leaves the impression that these companies thought they were above competition law in the UK.’

The case has divided regulators, with the European Union deciding to give the deal the green light a few weeks after the CMA blocked it.

When the CMA announced its opposition to the deal, Smith slammed the move as ‘bad for Britain’, telling the BBC it was the tech giant’s ‘darkest day’ in the 40 years it has been operating in the UK.

‘The European Union is a more attractive place to start a business than the United Kingdom,’ Smith said at the time. 

But US regulators have followed suit and a trial is set for August where the FTC will argue the deal would give Microsoft the ‘ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition’.