The Federal Trade Commission (FTC) intends to challenge a federal judge’s decision in California allowing Microsoft to proceed with its acquisition of video game maker Activision. In court documents filed on Wednesday, the FTC announced its plan to appeal the ruling.
The judge’s decision, issued on Tuesday, was a blow to the FTC, which argued that the merger would lead to consolidation in the tech industry and give Microsoft the ability to offer exclusive video game titles on its Xbox gaming consoles. However, Microsoft executives assured the court that they had no intention of restricting customer access to games, and the judge ultimately sided with the company.
Despite this setback, the FTC remains committed to its aggressive approach towards Big Tech companies under the Biden administration. The commission expects to file its appeal soon, as the temporary order blocking the acquisition is set to expire in the coming days.
Microsoft and the FTC declined to comment on the matter, while Activision Blizzard spokesperson Joe Christinat expressed confidence that the merger would proceed, emphasizing its benefits for both companies.
The outcome of the Microsoft case highlights the challenges faced by antitrust regulators in reining in big tech. While the FTC has pursued various actions against Amazon this year, including two privacy settlements and a lawsuit regarding allegedly deceptive consumer practices, its failure to block the Microsoft-Activision deal suggests an uphill battle in curbing consolidation in the tech industry.
Microsoft’s acquisition of Activision, which boasts popular games like “Call of Duty,” aligns with the company’s strategy to expand beyond its core focus on personal and cloud computing.
Overall, the FTC’s fight against tech industry consolidation covers a broad range of measures. While the merger between Microsoft and Activision proves to be a significant hurdle, the commission remains steadfast in its pursuit of regulating big tech companies.
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