{"id":22046,"date":"2022-12-08T19:54:23","date_gmt":"2022-12-08T19:54:23","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/08\/ftc-sues-to-block-microsoft-activision-blizzard-69b-merger\/"},"modified":"2022-12-08T19:54:23","modified_gmt":"2022-12-08T19:54:23","slug":"ftc-sues-to-block-microsoft-activision-blizzard-69b-merger","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/08\/ftc-sues-to-block-microsoft-activision-blizzard-69b-merger\/","title":{"rendered":"FTC sues to block Microsoft-Activision Blizzard $69B merger"},"content":{"rendered":"

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The Federal Trade Commission said Thursday it is suing to block Microsoft\u2019s planned $69 billion takeover of video game company Activision Blizzard, saying it could suppress competitors to its Xbox game consoles and its growing games subscription business.<\/p>\n

The FTC voted 3-1 to issue the complaint after a closed-door meeting, with the three Democratic commissioners voting in favor and the sole Republican voting against. A fifth seat on the panel is vacant after another Republican left earlier this year.<\/p>\n

The FTC\u2019s complaint points to Microsoft\u2019s previous game acquisitions, especially of well-known developer Bethesda Softworks and its parent company ZeniMax, as an example of where Microsoft made some poplar game titles exclusive despite assuring European regulators it had no intention to do so.<\/p>\n

\u201cMicrosoft has already shown that it can and will withhold content from its gaming rivals,\u201d said a prepared statement from Holly Vedova, director of the FTC\u2019s Bureau of Competition. \u201cToday we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.\u201d<\/p>\n

Microsoft\u2019s president, Brad Smith, suggested in a statement Thursday that the company is likely to challenge the FTC\u2019s decision.<\/p>\n

\u201cWhile we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court,\u201d Smith said.<\/p>\n

The FTC\u2019s challenge — which is being filed in an administrative court — could be a test case for President Joe Biden<\/a>\u2019s mandate to scrutinize big tech mergers.<\/p>\n

Microsoft had been ramping up its public defense of the deal in recent days as it awaited a decision.<\/p>\n

Microsoft announced the merger deal in January but has faced months of resistance from Sony<\/a>, which makes the competing PlayStation console and has raised concerns with antitrust watchdogs around the world about losing access to popular Activision Blizzard game franchises such as Call of Duty.<\/p>\n

Antitrust regulators under Biden \u201chave staked out the view that for decades merger policy has been too weak and they\u2019ve said, repeatedly, \u2018We\u2019re changing that,\u2019\u201d said William Kovacic, a former chair of the FTC.<\/p>\n

The goal is to \u201cnot allow dodgy deals and not accept weak settlements,\u201d said Kovacic, who was a Republican commissioner appointed in 2006 by then-President George W. Bush. But he said trying to block this acquisition could trigger a legal challenge from Microsoft that the company has a good chance of winning,<\/p>\n

\u201cIt\u2019s evident that the company has been making a number of concessions,\u201d he said. \u201cIf the FTC turns down Microsoft\u2019s commitments, Microsoft would likely raise them in court and say the FTC is being incorrigibly stubborn about this.\u201d<\/p>\n

Microsoft announced its latest promise Wednesday, saying it would make Call of Duty available on Nintendo devices for 10 years should its acquisition go through. It has said it tried to offer the same commitment to Sony.<\/p>\n

The deal is also under close scrutiny in the European Union and the United Kingdom<\/a>, where investigations aren\u2019t due to be completed until next year.<\/p>\n<\/div>\n