Home Technology Report: FTC may sue to block Microsoft’s proposed Activision Blizzard acquisition

Report: FTC may sue to block Microsoft’s proposed Activision Blizzard acquisition

by News Desk
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The US Federal Trade Commission is likely to try to block Microsoft Corp.’s proposed $68.7 billion takeover of Activision Blizzard Inc., according to a new article. report.

Politico said Wednesday, citing sources, that the FTC could file a lawsuit to block the deal as early as next month. However, sources caution that it’s unclear if the agency will go ahead with the move, as his four FTC commissioners have reportedly yet to vote on whether to file a lawsuit. Is not …

The report comes as the agency is said to be investigating Microsoft’s proposed Activision Blizzard deal. As part of the investigation, FTC officials reportedly took depositions from Microsoft CEO Satya Nadella and his Activision Blizzard counterpart Bobby Kotick. FTC officials are said to be skeptical of both companies’ claims to support the deal.

The proposed $68.7 billion acquisition announced If approved, it would be the biggest in the history of the tech industry earlier this year. Currently, his $67 billion acquisition of data center storage equipment maker EMC by Dell Technologies Inc. ranks as the industry’s most expensive acquisition.

Based in Santa Monica, California, Activision Blizzard develops a series of popular video games with over 400 million monthly active users in 190 countries. Last year, the company’s video games grossed him over $8 billion.

By acquiring Activision Blizzard, Microsoft will be able to significantly increase its share of the already significant video game market.microsoft got Acquired video game publisher ZeniMax Media Inc. for $7.5 billion in 2021. The tech giant is also developing his popular Xbox series of video game consoles.

Politico reported that FTC officials are concerned that Microsoft’s acquisition of Activision Blizzard could give the company an unfair boost in the video game market. The UK’s antitrust regulator, the Competition and Markets Authority, has also expressed concerns about the deal.After an initial investigation, the CMA announced that he Mention Trade into a more in-depth second stage antitrust investigation.

Microsoft’s proposed Activision Blizzard deal has also come under scrutiny from competitors. According to two of his sources cited by Politico, Google LLC has expressed concerns about the deal.

Microsoft offers a subscription service called Game Pass that provides access to a rotating catalog of video games. Google has reportedly claimed that Microsoft deliberately degraded the quality of the Game Pass user experience on Chrome. According to the report, Google argued that Microsoft had an incentive to continue the practice if Activision Blizzard’s proposed acquisition was approved.

Sony, which competes with Microsoft in the game console market, is also opposed. Activision Blizzard has made its portfolio of video games available for Sony’s PlayStation console series.and statement Sony, sent to the UKCMA earlier this year, argued that Microsoft would have an incentive to stop offering Activision Blizzard’s games on PlayStation consoles if the acquisition was approved.

Microsoft is said We plan to complete the acquisition of Activision Blizzard by the end of June next year. If the acquisition is approved, Microsoft estimates that the company’s video game business will be his third-largest revenue earner in the industry.

Photo: Microsoft

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