FTC nixes the Microsoft-Activision Blizzard deal

© Blizzard Entertainment/Activision Publishing/King.com.

The Federal Trade Commission (FTC) filed a lawsuit to block Microsoft from acquiring Activision Blizzard for 69 billion USD. By a 3-to-1 vote, the Commissioners approved the “administrative complaint”, showing that they have reason to believe that there has been a violation of antitrust legislation, and that they can prove this in front of an administrative judge. This acquisition “would enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription content and cloud-gaming business,” states the FTC. The Redmond giant will fight this vigorously. In an op-ed in this week’s Wall Street Journal, Brad Smith, Microsoft President, stressed that the company currently ranks third in the game console business behind Sony and Nintendo, and that it has “no meaningful presence in the mobile game industry.” He added: “we have complete confidence in our case and welcome the opportunity to present it in court.” Microsoft’s acquisition is beset on more than one front. Last month, the European Commission announced that it was starting its own “in-depth investigation” of the merger.

⇨ Ars Technica, Kyle Orland, “FTC files suit to stop Microsoft’s $69 billion Activision purchase.”

2022-12-08