"Microsoft's unpopular Game Pass price hikes have caught the attention of Lina Khan. The former head of the Federal Trade Commission (FTC) took to social media on Friday to once again criticize the company's acquisition of Call of Duty maker Activision Blizzard. "As dominant firms become too-big-to-care, they can make things worse for their customers without having to worry about the consequences," she wrote just a day after the price of Game Pass Ultimate rose to $30 a month."
"It was Khan's FTC during the Biden Administration that sued Microsoft to prevent the $70 billion Activision Blizzard deal from going through. The regulator argued that further market consolidation in gaming would harm consumers, and ended up taking the matter to court. A judge ultimately ruled in favor of Microsoft, but that hasn't stopped Khan and others from criticizing the outcome in the years since."
Lina Khan criticized Microsoft's acquisition of Activision, linking subsequent Game Pass price hikes and layoffs to increased market consolidation. The FTC previously sued to block the $70 billion deal on grounds that consolidation would harm consumers. A court ruled in favor of Microsoft, but Game Pass Ultimate later rose to $30 monthly and other price increases followed. The FTC argued that price increases, product degradation, and reduced investment through layoffs indicate exercising market power post-merger, harming gamers and developers. Advocates and regulators warn that large firms may become indifferent to customer welfare after consolidation, enabling higher prices, layoffs, and reduced product quality without market consequences.
Read at Kotaku
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