Microsoft is facing more opposition to its proposed acquisition of Activision Blizzard, according to a new report from Bloomberg (opens in new tab).

Sources told the site that in comments to the FTC, both companies said the deal could give Microsoft an unfair advantage in cloud gaming, subscription-based gaming services, and mobile gaming. This supports the FTC's position in the FTC's December 2022 transactional injunction action (open in new tab), filed over concerns that Microsoft would use its ownership of Activision Blizzard to "stifle competition in multiple dynamic and fast-growing gaming markets"

Sonny's position is supported by.

Sony has been the most vocal opponent of Microsoft's proposed acquisition of Activision Blizzard for obvious reasons, but Nvidia and Google have also entered the fray; Nvidia operates the cloud gaming service GeForce Now (opens in new tab) and may be concerned that Activision Blizzard games could be dedicated to Microsoft's competing service, Xbox Cloud Gaming (opens in new tab). According to the report, Nvidia did not directly oppose the deal, but "stressed the need for equal and open access to game titles."

Google recently pulled the plug on its Stadia cloud gaming service, and similar issues could arise on the mobile front. Often overlooked in Activision Blizzard (at least from a PC gaming perspective) is King, a mobile game developer. (That's why the company is sometimes referred to as ABK (open in new tab).) King is a big earner for Activision Blizzard, but more importantly, it is the developer of hugely popular mobile games like Candy Crush. Microsoft has recently expressed interest in launching its own mobile game store (opens in new tab), and it's not unreasonable to think that King's games might be store exclusives. He has said that he really wants Activision (open in new tab).

A Microsoft representative told Bloomberg that the company is "prepared to address issues raised by regulators and competitors and has been proactive in addressing them to ensure a successful transaction," adding, "We want more, not less, access to games for people." He added.

Initial indications are that Microsoft's acquisition of Activision Blizzard will eventually pass (open in new tab). However, resistance to the acquisition appears to be growing rather than waning: the FTC is the only regulatory agency that has acted against the deal, but the UK (open in new tab) and the EU (open in new tab) have also refused to simply wave their approval.

At the very least, it could be forced to make concessions regarding access to Activision Blizzard games, such as the 10-year deal Microsoft signed with Nintendo and Steam in December 2022. It's also not out of the realm of possibility that the FTC will break the deal altogether, as Nvidia well knows: Nvidia aborted its acquisition of British chipmaker Arm in 2022 (opens in new tab), shortly after the FTC sued to stop that acquisition (opens in new tab). It was.