Can the US Federal Trade Commission block Microsoft's acquisition of Activision Blizzard?
Microsoft's potential acquisition of Activision Blizzard will now be reviewed by the United States Federal Trade Commission, which has left some of the community confused.
The mega acquisition deal with Activision Blizzard will be the largest ever in the gaming industry's history. Valued at a little less than $70 billion, the sale is scheduled to be completed in the middle of 2023. But parts of the community have been left in the dark, with recent reports by the Federal Trade Commission (FTC) revealing plans to review the acquisition.
When the acquisition gets over, Microsoft will own Activision, Blizzard, and King. Microsoft will possess the entire set of studios and all IPs directly, but one big question does arise. Will the FTC be able to block the move on the grounds of antitrust law?
The FTC has blocked deals in the past, citing breaching of antitrust laws. The most high-profile case appears to be of it suing NVIDIA over a potential acquisition of mobile chipmaker Arm.
However, the principal investigation into the case was done in the UK over security concerns. While the deal between NVIDIA and Arm seems unlikely now, it's unclear what the exact reason is.
The FTC could restrict mergers or acquisitions if it feels there is a potential chance of unhealthy power consolidation. The investigation into Microsoft's acquisition is primarily routine to an extent.
There's a certain value threshold beyond which every major deal is reviewed as per routine. The deal in question is no different, and the crucial area to discuss will be if the acquisition will create a toxic monopoly?
While it's hard to predict the future, there are no indications that Microsoft will make Call of Duty titles exclusive on Xbox and PC. There are already
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