The FTC accused Microsoft of degrading Xbox Game Pass after its price hike and tier changes.

The FTC accused Microsoft of turning Xbox Game Pass into a "degraded product" in a filing to the U.S. Ninth Circuit Court of Appeals. Following Microsoft's announcement of a price hike and changes to its subscription tiers, the FTC argued that the new Standard tier, which removes day-one releases and other features, is a clear example of "exactly the sort of consumer harm from the merger" the FTC had previously alleged. The FTC's filing comes as it awaits a final decision from the U.S. Court of Appeals for the Ninth Circuit on its appeal against Microsoft's acquisition of Activision Blizzard.