FTC Sues Microsoft for Blocking Its $69B Acquisition of Activision Blizzard
The Federal Trade Commission sued Microsoft Thursday to stop its $69 billion acquisition of Activision Blizzard. This is a challenge to one of the most significant tech acquisitions of all time.
FTC filed an administrative complaint Thursday alleging that the blockbuster deal would make Microsoft the third largest video game publisher in the globe. It would also give Microsoft “both means and motives to harm competition.” The agency released that it would negatively impact prices as well as player experience and quality on consoles.
Brad Smith, Microsoft president, stated that he believes the deal will increase competition and provide more opportunities for game developers and gamers. “We have been committed from Day One to addressing concerns about competition, including offering concessions earlier this week to the FTC. We believed in peace and we welcome the chance to present our case before the court.
Bobby Kotick, Activision CEO, stated that the FTC suit might sound alarming but that he is confident the deal will be closed. He stated that “the allegation that this agreement is anti-competitive does not align with the facts. We believe we will win this challenge.”
Microsoft’s US merger challenge is its biggest setback to date.
Microsoft has aggressively courted regulators all over the globe in an effort to persuade them to approve the deal. This is also the FTC’s biggest challenge to the tech sector since it sued to disintegrate Facebook-owner Meta in 2020. It underscores the US officials’ loud promises of tough antitrust enforcement.
William Kovacic, a former chairman of the FTC and law professor at George Washington University, said that “this is the boldest move by the Biden administration so far to police big-tech mergers and to expand enforcement.” “This is more than any other thing they have done. It embodies their determination to be tough on mergers.
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