The U.S. Federal Trade Commission (FTC) is likely to file an antitrust lawsuit to block Microsoft’s $69 billion acquisition of video game giant Activision Blizzard (“Call of Duty,” “Candy Crush”) according to sources for Politico (via Reuters)
Such a lawsuit would be the biggest move yet to rein in the power of the world’s largest tech giants. According to the outlet though, said lawsuit is not guaranteed and the FTC’s four commissioners have reportedly yet to vote out a complaint or meet with lawyers for the companies.
However, the report says that staff reviewing the deal are sceptical of the companies’ arguments, and the investigation remains ongoing. If the agency does move ahead with a case, it could come as early as next month.
The central concern is that acquiring Activision would give Microsoft an unfair boost in the video game market, with rivals like Sony saying if Microsoft were to make hit games like the “Call of Duty” exclusive, Sony would be significantly disadvantaged and harm its ability to compete. Regulators in Europe and the UK have also recently opened deep probes into the deal.
In October, Sony told the UK’s Competition and Markets Authority that Microsoft is a “tech titan buying up irreplaceable content at incontestable prices ($68.7 billion) to tip competition to itself”.
Microsoft has accused Sony of making self-serving statements to maintain its number one position in gaming and says it has repeatedly promised to keep “Call of Duty” available on Sony’s PlayStation – including a recent offer to give Sony access to the game for the next decade.
Microsoft spokesperson David Cuddy said the company “is prepared to address the concerns of regulators, including the FTC, and Sony to ensure the deal closes with confidence.”
The companies have until July 2023 to close the deal without renegotiating the agreement, but an administrative lawsuit filed in the next few months is unlikely to be resolved by July – and could potentially force the companies to abandon the deal.
Source: Politico (via Reuters)
