Google, Nvidia Express Concerns to FTC About Microsoft’s Activision Deal
Alphabet Inc.'s Google and Nvidia Corp. have expressed concerns to the Federal Trade Commission about Microsoft Corp.'s acquisition of Activision Blizzard Inc., adding fuel to the government's case against the $69 billion deal, according to people familiar with the matter.
The companies joined Sony Group Corp. in raising issues with the transaction, which the FTC sued to block in December. The commission has argued that the deal would hinder competition in the video-game industry and has scheduled an in-house trial for August. Either company could be called to testify as part of the FTC trial.
Google and Nvidia provided information that backs a key FTC contention — that Microsoft could gain an unfair advantage in the market for cloud, subscription and mobile gaming — according to the people, who asked not to be identified because the process is confidential. In its remarks to the FTC, Nvidia stressed the need for equal and open access to game titles but didn't directly oppose the acquisition, according to one of the people.
Microsoft first announced the Activision deal almost a year ago, looking to add blockbuster games such as Call of Duty and World of Warcraft to a business that already includes the Xbox console, the Halo franchise and Minecraft world-building software. But regulators fear that Microsoft could make it harder for rival platforms to get unfettered access to Activision's most popular titles.
Shares of Activision dipped to session lows after Bloomberg reported the news. The stock is currently trading at $76.75 in New York, well below the $95-a-share bid, suggesting that investors see closing the deal as an uphill fight. Microsoft rose less than 1% to $237.88.
Nvidia and Google are both major forces in the
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