FTC makes another attempt to stop Microsoft's $69bn Activision acquisition
What's the story
The US Federal Trade Commission (FTC) is gearing up to challenge a federal judge's decision that allowed Microsoft's massive $69 billion acquisition of Activision Blizzard.
This historic deal, which became the largest in the gaming industry, was finalized on October 13, 2023, after getting the green light from British regulators.
In December 2022, the FTC sued, saying Microsoft might use Activision's popular games to crush competition and dominate subscription and cloud gaming.
Details
FTC's expected arguments
In a California appeals court, FTC intends to argue that the lower court judge held them to an unfairly high standard. Instead of recognizing serious competition concerns, the judge wanted proof that the deal was anti-competitive.
Plus, the FTC is also expected to assert that the judge messed up by using deals Microsoft made with other companies as proof that the merger wouldn't hurt competition.
What Next?
Microsoft's expected arguments
Microsoft plans to argue that the FTC hasn't proven any mistakes in the judge's decision.
They are also expected to argue that there's no proof Microsoft wanted to prevent Call of Duty from being on other gaming platforms.
This legal battle is part of the Biden administration's broader attempt to tackle mergers and price hikes affecting consumers in different industries.
Insights
Who makes up the panel of judges?
The appeals court panel includes judges Daniel Collins and Danielle Forrest, nominated by former US President Donald Trump, and Jennifer Sung, nominated by US President Joe Biden.
Despite losing in the lower court, the FTC continues to challenge the deal. The regulators in the EU and the UK have approved the merger.