In an expected court filing on Monday, a source revealed that the US Federal Trade Commission (FTC) plans to file an injunction against Microsoft’s acquisition of Activision Blizzard. The American software behemoth has ambitions to acquire the famous Call of Duty videogame maker in a deal worth a staggering $69 billion (nearly Rs. 5,68,800 crore).
While the EU was in favor of the Activision deal and approved it in May, the British competition authorities blocked the takeover in April. The FTC, which is responsible for enforcing antitrust law, initially requested a judge to block the transaction in December citing that it would give Microsoft’s Xbox exclusive access to Activision games, thereby leaving Nintendo consoles and Sony Group’s PlayStation high and dry.
The presiding judge overseeing the case in the Northern District of California would have to approve the order for the injunction to stand. Microsoft President Brad Smith welcomed the opportunity to present their case in federal court.
Microsoft has argued that the acquisition would be mutually beneficial for gaming companies and gamers alike. They have extended an invitation to sign an agreement with the FTC to offer Call of Duty games to its competitors, including Sony, for ten years. Despite this, the case demonstrates the Biden administration’s muscle-bound approach to antitrust enforcement.
However, antitrust experts believe that the FTC could face a tough time convincing the judge to block the deal due to the voluntary commitments offered by Microsoft to allay concerns of “dominating” the gaming industry.
Source: Thomson Reuters 2023.
