The Federal Trade Commission may be looking to file an antitrust lawsuit to challenge Microsoft's $69 billion Activision takeover. Regulators, along with some key industry players like Sony have been increasingly pushing back at the ongoing Microsoft acquisition deal of Activision Blizzard. Now, the FTC is reportedly investigating the deal over its potential to give the tech giant an unfair boost within the gaming industry.
Microsoft's $69 billion takeover is currently being scrutinized by regulatory bodies of 16 countries. While countries like Brazil and Saudi Arabia have already approved the deal, other regulatory bodies have been more vocal about its concerns. Back in October, the UK's Competition and Markets Authority (CMA) requested the public to voice their opinion on the Microsoft-Activision deal. Recently, both Phil Spencer, Head of Xbox, and Jim Ryan, CEO of Sony Interactive Entertainment, have been more public about their company views with Sony claiming the "transaction will harm competition, industry participants, innovation, and consumers."
According to a report citing "three people with knowledge of the matter," the FTC is reviewing the Microsoft takeover and is likely to file an antitrust lawsuit. The regulator is reportedly skeptical over Microsoft and Activision's arguments on the matter, though a lawsuit challenging the deal isn't still guaranteed. Further, it is reported that the four FTC commissioners are yet to vote out a complaint or meet with lawyers of Microsoft and the Candy Crush maker.
Much of the regulatory concerns stem from the likelihood for Microsoft to gain an unfair advantage in the gaming industry, particularly considering its potential ownership over IPs like Call of Duty, Overwatch, Candy Crush, and Elder Scrolls. Microsoft has already pledged to keep Call of Duty on PlayStation for the foreseeable future, despite Sony's skepticism.Though the FTC's concerns also pertain to determining how Microsoft could potentially leverage its position with future unannounced titles.
As of now, it remains to be seen how the FTC's actions will impact Microsoft's takeover and the gaming industry as a whole. While an FTC lawsuit won't necessarily mean that the Microsoft-Activision deal won't go through, the potential court battle will still put the Windows maker in a tough spot. Following its previous antitrust battles over two decades ago, Microsoft has largely remained out of regulators' eyes. An antitrust lawsuit would come as a major black mark for the company, especially considering how Microsoft has positioned itself within the tech industry in recent years.
Source: POLITICO