Update: Nov. 28, 2022:
A Microsoft spokesperson issued a statement to GLHF and USA Today FTW regarding the Politico report:
“As we have said before, we are prepared to address the concerns of regulators, including the FTC, and Sony to ensure the deal closes with confidence,” the spokesperson said. “We’ll still trail Sony and Tencent in the market after the deal closes, and together Activision and Xbox will benefit gamers and developers and make the industry more competitive.”
Original Story: Nov. 23, 2022:
The FTC plans to file an antitrust lawsuit to block the Microsoft-Activision deal, sources familiar with the matter told Politico. The report follows weeks of efforts from Microsoft to convince regulators in the U.S. and U.K. that its Xbox gaming segment isn’t a threat to Sony Interactive Entertainment and, more recently, that Call of Duty – a franchise whose latest entry became the year’s best-selling game within a few weeks of launch – isn’t popular enough to warrant antitrust concerns.
Some forces within the FTC, including Chair Lina Khan, have adopted a more aggressive stance against consolidation in the tech space in recent years, and some U.S. lawmakers, including Sen. Bernie Sanders, petitioned the FTC to block the acquisition earlier in 2022, citing concerns over consumer data and the negative effect such a merger may have on burgeoning labor movements in the games space.
Politico’s sources are reportedly familiar with the matter, though the FTC hasn’t made an official decision. Politico even hedged its report by saying the FTC may not file the suit anyway and that its members haven’t even met with lawyers from Microsoft yet. However, Politico’s sources said Microsoft’s arguments have proved unconvincing thus far.
Should the deal go through, Microsoft will acquire Activision Blizzard and some of the most lucrative properties in gaming, including Call of Duty and Activision subsidiary King Games’ portfolio, which consists of Candy Crush Saga and its numerous spinoffs.
Written by Josh Broadwell on behalf of GLHF
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