A brand new report by Bloomberg claims that america’ Federal Commerce Fee is about to evaluation Microsoft’s acquisition of Activision Blizzard. A supply near the company, which holds an aggressive stance in opposition to such offers, instructed the publication that it’ll examine the acquisition as a substitute of the Justice Division to find out if it harms competitors. Microsoft declined to touch upon the report and the FTC didn’t reply to a request for remark.
Why FTC might be unhealthy information for Xbox Activision deal
As Bloomberg factors out, FTC needs to vigorously pursue mergers and takeovers and has advocated for harsher insurance policies in opposition to potential monopolies. Below its present chair, Lina Khan, the FTC has already moved to dam Nvidia Corp.’s buy of Arm Ltd. and Lockheed Martin’s buy of Aerojet Rocketdyne Holdings Inc. Microsoft might want to show that its acquisition of Activision Blizzard isn’t an anti-competitive transfer, which may be exhausting to do if it has plans to make at the moment multiplatform video games unique to the Microsoft ecosystem sooner or later.
Shortly after Microsoft introduced the acquisition, quite a few specialists mentioned that whereas they imagine the deal will shut, any plans to maintain future Call of Duty video games from releasing on Sony’s platforms will irk regulators. Microsoft has been very imprecise about its intentions involving the franchise, which is taken into account a family title. It additionally doesn’t assist that Activision Blizzard is a way more important affair than Bethesda, and each high-profile offers got here one after the opposite.
Opinion: Consolidation of the video games business must make sense
Zarmena writes… Sony and Microsoft are each aggressively pursuing acquisitions, and whereas the previous has been buying studios that it’s identified to work with, the latter is usurping total publishers. This simply doesn’t bode properly and it’s no shock that the authorities appear extra alarmed than ever earlier than. Up to now, we’ve seen nothing that implies that these acquisitions are good for the business but it surely’ll be fascinating to see if Microsoft can persuade FTC to view the deal favorably.