In January 2022, Microsoft announced that it was planning to acquire Activision Blizzard for roughly $69 billion, however, the Federal Trade Commission (FTC) and the UK’s Competition and Markets Authority (CMA) intervened as the two organizations tried to block the acquisition claiming that the deal would hinder competition, particularly in the cloud gaming sector.
In July, the FTC requested a preliminary injunction over the billion-dollar deal, however, Microsoft managed to win as the request was denied. However, FTC has challenged the deal once again with a new order and this time, they believe that they’re prepared.
Federal Trade Commission (FTC) opposed the Microsoft and Activision Blizzard deal once again
This week, the Federal Trade Commission (FTC) filed a new order challenging Microsoft and Activision Blizzard’s $69 billion deal once again. FTC spokesperson Victoria Graham previously told Bloomberg,
“The FTC continues to believe this deal is a threat to competition.”
The order mentions the Commission has “determined that the public interest warrants that this matter be resolved fully and expeditiously,” and this will be conducted in a virtual hearing very soon.
Microsoft and Activision Blizzard can close the deal
In July, the FTC lost the preliminary injunction request, so Microsoft and Activision Blizzard can still close the deal before the deadline of October 18th. In a recent statement, Microsoft stated,
“We still anticipate that we will close the transaction by October 18, and we have full confidence in our case and the deal’s benefits to gamers and competition.”
On top of all this, FTC boss Lina Khan was also accused of wasting taxpayer money with the appeal in July. Now, as the new order was filed, once again FTC faces backlash.
Also read: Not Just Call of Duty, 6 More Iconic Games Xbox Can Deny PlayStation after Microsoft Activision Deal
Why was the deal opposed?
FTC strongly believes that this deal will be bad for the competition. Sony has expressed concerns over the deal, claiming that the combined company would deny the PlayStation platform of games like Call of Duty, but a binding agreement has been made to keep Call of Duty on PlayStation for 10 more years after the deal.
If the deal works out, Microsoft will officially own Activision, Blizzard Entertainment, and King under the Microsoft Gaming division as a sibling to Xbox Game Studios. As of now, the deal is expected to close by October 18, 2023.
Related: The CMA Has Provisionally Approved Microsoft’s Acquisition of Activision Blizzard
Source: Bloomberg
