FTC Abandons Biden-Era Block on Microsoft-Activision Merger
The FTC has dismissed its efforts to block Microsoft's acquisition of Activision Blizzard, marking a significant shift in regulatory stance under Republican leadership.
Overview
The Republican-controlled FTC has dropped its litigation against Microsoft's $69 billion acquisition of Activision Blizzard, previously initiated under the Biden administration. The FTC stated that dismissing the case serves the public interest. This decision follows a similar dismissal of a lawsuit against PepsiCo. Microsoft completed the Activision purchase in October 2023 after overcoming legal challenges. FTC Chairman Andrew Ferguson criticized the previous administration's actions as politically motivated. The current FTC, now with three Republican commissioners, has not obstructed some Biden-era policies, including new rules on fee disclosures.
Content generated by AI—learn more or report issue.
Get both sides in 5 minutes with our daily newsletter.
Analysis
- The article discusses the FTC's decision to drop the case against Microsoft's acquisition of Activision Blizzard.
- It highlights a shift in regulatory attitudes under Republican leadership, favoring business acquisitions.
- The tone is neutral to slightly positive, reflecting complexities in political influences on business regulations.
Articles (3)
Center (1)
"…The FTC said it had determined that 'the public interest is best served by dismissing the administrative litigation in this case.'"
Associated Press·1M·FAQ
The FTC sought to block Microsoft's acquisition due to antitrust concerns, fearing that Microsoft would suppress competition by gaining exclusive control over popular game titles like Call of Duty, Diablo, and World of Warcraft, potentially harming competitors such as Sony’s PlayStation.
After losing a court appeal to reverse a judge’s decision to block the deal, the FTC determined that continuing litigation was no longer in the public interest and dismissed the case.
The UK’s Competition and Markets Authority initially blocked the deal but later approved a restructured agreement, which allowed Microsoft to complete the acquisition in October 2023.
Before and after the acquisition, Activision Blizzard struggled with its esports franchises facing high costs and missed revenue promises, leading to franchise owners' collective bargaining. The company also faced public backlash due to sexual harassment lawsuits that caused sponsorships to pause.
The new Republican-controlled FTC has dropped the case against Microsoft and has not obstructed some Biden-era policies, such as new rules on fee disclosures, suggesting a shift in regulatory approach under the current leadership.
History
- This story does not have any previous versions.