FTC vote ended split on suing Microsoft over Activision acquisition

Daniel Sims

Posts: 754   +29
Staff
Why it matters: Microsoft's $69 billion attempt to acquire Activision Blizzard King faces headwinds from regulators in the United States, the United Kingdom, and Europe. A US lawsuit could slow down the buy, even if Microsoft prevails. As the UK and Europe ramp up the pressure, signs indicate the US might endorse the deal, possibly with concessions.

The New York Post reports that the US Federal Trade Commission (FTC) is split on whether to levy an antitrust lawsuit against Microsoft's attempt to buy Activision. Rather than face a split vote, the FTC might approve the deal. Sources told the Post that one member of the four-person FTC panel already favored the acquisition, and another recently leaned towards Microsoft. A 2-2 vote would effectively kill a lawsuit.

In June, the FTC said it would examine the deal's potential impact on workers. Microsoft started talks for the acquisition soon after Activision became embroiled in a sexual harassment scandal that sparked an employee walkout.

Activision workers have since successfully voted twice to unionize, which Microsoft said it wouldn't oppose. An op-ed supporting the buyout from the Communication Workers of America's president this week could further bolster its pro-worker image, improving its chances of closing.

Bloomberg's sources say that Microsoft is prepared to fight if the FTC does sue. The company hasn't yet offered any concessions but has not taken them off the table either. A suit would likely drag the deal beyond Microsoft's expected June 30 closure date, but the company has a good chance of winning in court.

United Kingdom and European Union regulators have closely scrutinized the deal because it would hand Microsoft ownership of Call of Duty, one of the gaming industry's biggest franchises. Sony has repeatedly raised fears that Microsoft would stop releasing Call of Duty titles on PlayStation, while Microsoft continually denies such intentions.

While Microsoft hasn't proposed remedies to the UK's Competition and Markets Authority, it will reportedly offer the EU concessions sometime this month. Any compromises from the company would involve the continued release of Call of Duty games on rival consoles like PlayStation and could come before the EU can formalize its objections to the acquisition next year. A deal with the FTC could cover the same point of contention.

The acquisition has so far gained approval in Brazil, Saudi Arabia, and Serbia.

Permalink to story.

 

bviktor

Posts: 1,154   +1,685
What a show they put on though, worrying about the distant 3rd's "dominance" in the market.
 

dangh

Posts: 851   +1,444
What a show they put on though, worrying about the distant 3rd's "dominance" in the market.
It is the biggest company in the world. Already undercutting competition. After getting acti they won't be distant anymore, they be 2nd after tencent. And with aggressive expansion, acquiring IP and keeping them out of competition stores while not caring about being in black they aiming to be 1st. And with ms history of using their dominant position that does not look good.
 

emmzo

Posts: 811   +1,247
Well, the US has been built on monopolies, I don't know why they'll stop now. They allow FB, Google, Apple and MS to buy all competition, no questions asked, why is this deal any different? Ofc it will pass.
 

Avro Arrow

Posts: 3,350   +4,358
Jeez, just when you think that the US government will do something to prevent monopolies (like they're supposed to), they fail again. I can't say that I'm shocked, given their track record.