FTC may block Microsoft’s acquisition of Monster Activision Blizzard


Just as Microsoft has been battling with UK and EU regulators for months over its acquisition of Activision Blizzard, a new Final Boss may be about to enter the arena.

According to a new report from Politico, the FTC is about to file an antitrust lawsuit to block Microsoft’s $69 billion acquisition of Activision Blizzard, the largest acquisition ever in the video game industry.

While it’s no guarantee that a lawsuit will be filed, reports indicate it’s heading in that direction, and the main concern is that the deal will give Microsoft an “unnecessary boost” in the video game market.

If that’s the case, we’re probably in for a lengthy legal battle, and we’re likely to repeat many of the arguments we’ve already seen from the parties involved.

Regulators in the EU and UK have been almost straight-talking Sony’s talking points, focusing on how the deal will give Microsoft one of the biggest, most profitable IPs in gaming, Call of Duty. and allowing them to potentially ban Sony. Biggest competitor by access to the game.

Meanwhile, Microsoft has repeatedly stated that they have no plans to acquire Call of Duty from PlayStation, and will even sign a ten-year contract with them to ensure that doesn’t happen. They will treat it like Minecraft, a previous acquisition that never left the platform it always existed on.

it is debated out of the ordinary True video game fans are disgruntled because these regulators barely understand the industry and both companies are making misleading, often hypocritical statements to support their respective goals.

Sony has been actively pursuing exclusivity with special benefits for Call of Duty for ages, but accuses Microsoft of possibly doing the same after the acquisition. Sony also said the deal could mean Microsoft could raise hardware or software prices in a less competitive market after Sony raised PS5 prices in some regions and that they would pass on the $70 price increase. were the main driver of the increase. This generation

Microsoft isn’t flawless here either, with CEO Satya Nadella saying things like “let’s compete” when talking about his company buying up a video game publisher with a market cap nearly as high as Sony’s. Microsoft downplays its own games and series by saying Sony is in a better position with its IP, but has given an excuse as to why their other While this wouldn’t be the case with Call of Duty, acquisition deals have led to games being exclusive to Xbox. Until recently, Microsoft was only trying to say that “big” games would remain multiplayer, which may not include “medium” games like the upcoming Elder Scrolls VI and Starfield. Medium… size. Definitely ok.

It is an exhausting battle between the two sides with very bad arguments on both sides. But from the regulatory investigations so far, it looks like Microsoft is slowly losing this battle, and if the FTC takes Sony’s points in the same way it does abroad, it could spell disaster for the deal. And if the deal is dead? It could do serious damage to Activision who is really into it, and failure at this point could spell doom for the game’s output and employees. Not that there’s any reason to approve of it, but at the moment, given the reality of the situation, it’s certainly a likely outcome.

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