FTC To Review Microsoft Acquisition Of Activision Blizzard
The FTC will reportedly review Microsoft's proposed merger with Activision Blizzard. The $70 billion deal was announced two weeks ago and would easily represent the largest transaction in video game history.
However, that merger is far from a sure thing. As reported by Bloomberg, the United States Federal Trade Commission will investigate the deal amidst a growing concern with consolidation in the big tech sector. The FTC Will partner with the Justice Department in this investigation to ensure that Microsoft's merger doesn't represent a threat to consumers or the video game market.
Related: Sony Buying Bungie Is Bad Too
On the same day as Microsoft made its big announcement, the FTC and Justice Department jointly announced plans to rewrite merger guidelines for big businesses, warning that many US industries are becoming dangerously concentrated. FTC chair Lina Khan made alarmist remarks about companies achieving monopoly power, leading to higher prices for consumers and lower wages for workers.
"Illegal mergers can inflict a host of harms, from higher prices and lower wages to diminished opportunity, reduced innovation, and less resiliency," Khan said in a statement.
Besides the traditional view that mergers can be harmful to consumers, Khan also said the FTC and Justice Department must expand its scope to also include other businesses as well. Amazon's power has resulted in retailers and manufacturers feeling increasingly forced to sell through its digital marketplace, for example.
Although Microsoft's acquisition of ZeniMax media was approved, the FTC has shown increasing hostility towards consolidation. Just recently, the FTC sued Nvidia to stop its merger with chip manufacturer Arm, a move that seems to have
Read more on thegamer.com
