The FTC introduced Thursday that it might sue to dam Microsoft’s acquisition of gaming large Activision Blizzard. Microsoft introduced plans to purchase the corporate, which has been affected by sexual harassment and discrimination allegations and labor disputes, again in January for $68.7 billion.

The deal could be mark a seismic shift within the gaming trade — Activision Blizzard owns vastly well-liked video games just like the Name of Obligation franchise and World of Warcraft — however the huge measurement of the deal and the prevailing anti-consolidation sentiment meant that it was due for some intense regulatory scrutiny from day one.

In its assertion, the FTC cites issues that the deal would “allow Microsoft to suppress rivals” to Xbox, together with its paid Sport Move subscription service and cloud gaming providers.

“Microsoft has already proven that it could possibly and can withhold content material from its gaming rivals,” FTC’s Bureau of Competitors Director Holly Vedova mentioned. “Right this moment we search to cease Microsoft from gaining management over a number one impartial recreation studio and utilizing it to hurt competitors in a number of dynamic and fast-growing gaming markets.”

PlayStation maker Sony, Microsoft’s console rival, has loudly objected to the proposed merger, which might consolidate a few of the world’s hottest video games underneath the Xbox’s banner. In current weeks, Microsoft has been trying to stave off the regulatory risk by promising to offer Name of Obligation equal therapy on the PlayStation and even agreeing to convey the franchise to Nintendo if the deal goes by means of.