Microsoft has another problem. The FTC can file an “antitrust lawsuit” and block the deal with Activision
It’s not just UK or European officials who will take a closer look at Microsoft’s concern with Activision Blizzard. It is said that the Federal Trade Commission is considering officially blocking the deal, which could somehow adversely affect the market.
The Federal Trade Commission (FTC) is an independent agency of the United States government whose job it is to ensure that transactions by large corporations do not have a negative impact on the people of the United States and the rest of the economy. Its main purpose is to protect consumer rights.
The Politico editorial staff shared a report according to which “Federal Trade Commission likely to file antitrust lawsuit to block Microsoft’s acquisition of $69 billion video game giant Activision Blizzard”. As Josh Sisco points out, the agency would be preparing to undertake the “biggest intervention” in the history of Lina Khan’s presidency – the specialist took office in 2021.
Politico emphasizes that an FTC lawsuit against Microsoft would be a “black spot” for the whole deal, but nothing has yet been decided, as two sources familiar with the matter indicate that four more Commissioners did not vote or meet with company lawyers. However, there were interrogations of such significant representatives of the corporation as Satya Nadella and Bobby Kotick. FTC employees are reportedly “skeptical of the arguments” of the Redmond giant.
“A central point of FTC concern is whether the Activision acquisition would give Microsoft an unfair boost in the video game market. Microsoft’s Xbox is number three against industry-leading Sony Interactive Entertainment and its PlayStation console. Sony, however, is the main opponent of the deal, telling the FTC and regulators in other countries that if Microsoft takes a blockbuster like Call of Duty exclusive to its platforms, Sony will be at a huge disadvantage.”
However, the FTC is investigating other projects to see how The American producer could use the still unannounced productions to his advantage:
“According to two people with knowledge of the matter, however, the FTC’s concerns extend beyond Call of Duty, with investigators trying to determine how Microsoft could use future unannounced titles to grow its gaming business.”
However, the Federal Trade Commission does not need to take any action as regulators from Europe and the UK are still working – the deal would not close until spring next year, while US officials share the concerns of colleagues in other regions.
#Microsoft #problem #FTC #file #antitrust #lawsuit #block #deal #Activision