Report: FTC "likely" to challenge Microsoft's purchase of Activision Blizzard
Politico is reporting that the United States Federal Trade Commission (the primary regulator of corporate acquisitions in the United States) is "likely" planning a lawsuit that would attempt to halt Microsoft's $68.7 billion acquisition of Activision Blizzard. If the agency chooses to file a lawsuit, it could come as early as next month.
Sources speaking to Politico said that plans for a lawsuit were not finalized yet (the FTC's four commissioners have not formally issued a complaint), but staff reviewing the deal are reportedly "skeptical" of the arguments presented by the two companies. The CEOs of both companies—Microsoft's Satya Nadella and Activision Blizzard's Bobby Kotick—have reportedly been deposed as part of this process.
If the FTC were to file such a lawsuit, it would be the most significant antitrust prosecution in some time. FTC Chair Lina Khan has spent 2022 signaling her intent to reign in larger tech mergers. The Commission filed a lawsuit to halt Meta's purchase of VR exercise developer Within, and reportedly "scrutinized" Sony's acquisition of Destiny 2 developer Bungie.
The $3.6 billion acquisition of Bungie was allowed to conclude.
This is the first time in months that we've heard any indication of regulatory activity to Microsoft's acquisition of Activision Blizzard from the FTC. In March, a group of US Senators urged the Commission to examine the deal.
The tech giant has been tangling with objections filed by PlayStation maker Sony in Brazil, the European Union, and the United Kingdom. Regulators in the latter two regions have signaled their intent to investigate the merger more deeply.
Meanwhile Sony's objections to the acquisition have grown louder and more public in recent months. Just today, the
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