The US Federal Trade Commission (FTC) has decided to pause its administrative challenge aimed at halting Microsoft’s acquisition of Activision Blizzard. This potential merger would be the most costly in video game history.
On December 8, 2022, the FTC announced its intention to block the acquisition through a legal lawsuit on the grounds that “Microsoft has demonstrated its ability and willingness to withhold content from its gaming competitors.”
However, the United States District Court for the Northern District of California rejected the FTC’s request for a preliminary injunction that would have allowed the FTC’s internal court to examine the impact on competition and consumers.
“The Court finds that the FTC has not demonstrated a likelihood of success in its claim that this particular vertical merger in this specific industry would significantly reduce competition,” stated Judge Jacqueline Scott Corley. “On the contrary, the evidence on record indicates that consumers would have greater access to Call of Duty and other Activision content.”
Consequently, the case has been paused and will not be presented to the in-house administrative judge next month (via The Verge). However, this presents an opportunity for the FTC to potentially re-file the challenge, as Microsoft and Activision Blizzard have extended the acquisition deadline.
With this positive development, Microsoft and Activision Blizzard are now focused on negotiations with the Competition and Markets Authority (CMA) in the United Kingdom.
“We are optimistic about completing this transaction and excited to bring more games to players worldwide,” said Phil Spencer, CEO of Microsoft Gaming. In contrast, the CMA stated that Microsoft’s evidence was “insufficient to address [its] concerns” regarding a potentially skewed competitive landscape.
In other gaming news, the second trailer for the upcoming Gran Turismo movie provides further insight into the real-life story of professional racing driver Jann Mardenborough. Mardenborough is the youngest winner of the GT Academy, where 90,000 gamers competed for a chance to pursue their racing dreams.
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Basant Kasayap is an entertainment aficionado who delves into the glitz and glamour of the entertainment industry. From Hollywood to Bollywood to regional cinema, she offers readers an insider’s perspective on the world of movies, music, and pop culture.
