Summary
The Federal Trade Commission (FTC) continues to fightMicrosoftover its $68.7 billion acquisition of Activision Blizzard. In an update following the FTC’s appeal over a federal court order that greenlit the deal, the agency reiterated its arguments against Microsoft’s efforts. However, it remains to be seen if the proceedings will go the FTC’s way, particularly considering thatMicrosoft has already closed the Activision Blizzard acquisition.
Since the announcement of the deal back in 2022, there has been much contention about the possible repercussions for the industry should Microsoft acquire a gaming giant like Activision Blizzard. Apart from the FTC, the loudest opposition was from Sony and the UK’s Competition and Markets Authority (CMA). But even asSony signed aCall of Dutydeal with Microsoft, it wasn’t until the CMA’s approval that the Xbox maker finally closed the deal. But the FTC still believes the acquisition shouldn’t go through at all, citing concerns over anti-competition.
Speaking to a three-judge appeals court panel in California, a lawyer for the FTC argued that the federal court judge held the agency to too high a standard in proving Microsoft’s deal was anti-competitive. He stated that the FTC only needed to showcase Microsoft’s ability to withhold Activision’s titles from other gaming platforms to make the agency’s argument. The lawyer further pointed out that the Xbox maker followed a similar strategy afterMicrosoft acquired ZeniMax Media. However, Microsoft’s lawyer called the agency’s case “weak” and that it had yet to show evidence that the company had an incentive to withhold IPs likeCall of Dutyfrom rival gaming platforms.
In the months preceding the deal’s closure,Microsofthad been vocal about its intentions to keepCall of Dutyand Activision’s other franchises as open as possible in the long run. The company has also routinely pointed out its deals that promised to make Activision Blizzard’s titles available to other platforms like Nintendo, Nvidia’s GeForce Now, and even PlayStation.
It’s worth noting that the deal’s closure comes at a time when numerous gaming companies have laid off staff after acquiring reputable game studios. For instance,Embracer Group proceeded with layoffsafter a rumored failed deal with Saudi Arabia, leading to studio closures in an effort to reduce the company’s debt. More recently, Bungie’s struggles following a round of layoffs shone a light on the studio’s challenging future, even as Sony foot $3.6 billion acquiring the studio a year ago. Of course, time will tell how Activision Blizzard’s future pans out underMicrosoftand if the FTC’s attempts at thwarting the purchase may shape the coming months in any way.
