FTC: Microsoft-Activision Blizzard deal should remain blocked for now
Microsoft finds itself in yet another legal hurdle as the US Federal Trade Commission (FTC) has appealed for an injunction to temporarily block its $68.7 billion acquisition of Activision Blizzard. The FTC appealed the decision to block the proposed Microsoft-Activision merger in federal court citing potential harm to competition in the console, cloud gaming and gaming subscription sectors. The FTC’s in-house court needs more time to assess the situation and rule whether the merger would be detrimental to consumers.
This is not the first instance of regulators being hesitant to give Microsoft the green light. Earlier this year, the UK’s Competition and Markets Authority (CMA) ruled against the Microsoft-Activision deal over accusations of stifling competition in the gaming industry.
Earlier this year, Microsoft signed a 10-year deal with Nintendo to ensure future Call of Duty titles will get same day release and feature parity on Nintendo systems. Microsoft has also offered a similar Call of Duty deal to Sony.
Looking ahead, several noteworthy executives from Microsoft, Sony and Activision Blizzard will testify before US federal court. Microsoft’s key executives among which Xbox Game Studios CEO, Phil Spencer and Microsoft CEO Satya Nadella will defend against the FTC’s injunction request next week. Sony Interactive Entertainment President and CEO of Jim Ryan and Activision Blizzard CEO Bobby Kotick are also expected to take to court to voice their opinions.
