• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia

According to Politico, The FTC Will Sue to Halt Microsoft's Activation Bid

Aria Thomas

Nov 24, 2022 14:12


Wednesday, sources informed Politico that the U.S. Federal Trade Commission (FTC) is expected to initiate an antitrust case to block Microsoft Corp's (NASDAQ:MSFT) $69 billion takeover plan for video game developer Activision Blizzard Inc. (NASDAQ:ATVI).

According to the source, the likelihood of a lawsuit challenging the acquisition is uncertain, and the four FTC commissioners have not yet voted on a complaint or met with the businesses' counsel. Moreover, the FTC investigators are skeptical of the corporations' motivations.

The FTC did not immediately respond to requests for comment from Reuters.

A spokeswoman for Activision Blizzard remarked, "We are committed to continuing to work peacefully with authorities throughout the world to allow the purchase to proceed, but we will defend the deal if required." The spokesperson claimed that any claim that the transaction may have anticompetitive effects is "completely absurd."

In extended trading, Activision shares slid around 2% after closing 1% higher.

Microsoft, the maker of the Xbox game console, said in January that it would purchase Activision, the developer of the "Call of Duty" and "Candy Crush" video games, in the biggest gaming industry acquisition in history, as global technology titans made claims to the virtual future.

Microsoft expects the partnership to help it compete with Tencent and Sony, the video game industry's titans (NYSE:SONY).

Additionally, the deal is being investigated outside of the United States. This month, the EU initiated a comprehensive investigation. The EU competition enforcer indicated that a judgment about the approval or rejection of the transaction would be made by March 23, 2023.

In September, the British antitrust authorities declared that a detailed inquiry will be conducted.

According to Britain's antitrust commissioner, Microsoft's unwillingness to let competitors access Activision's best selling games may hurt the industry.

Sony, the Playstation platform's maker, has questioned the pact, citing Microsoft's control over games such as "Call of Duty."

"As the market leader, Sony is anxious about 'Call of Duty,' but we've committed to publishing the same game on Xbox and PlayStation on the same day," claimed Brad Smith, President and Vice Chair of Microsoft.

A Microsoft official stated: "To ensure a confident completion, we are prepared to address the concerns of authorities, including the FTC and Sony. When the acquisition is finalized, we will continue to lag behind Sony and Tencent in the market, but Activision and Xbox will benefit gamers and creators and promote industry competitiveness."