FTC Appeals Court’s Ruling, U.K. Regulator Blocks the Deal, EU Approves, and Sony Stands Firm Against the Acquisition.
Microsoft’s attempt to acquire Activision Blizzard for a staggering $68.7 billion is being met with regulatory hurdles and fierce opposition. The tech giant is currently seeking clearance from regulators worldwide, with mixed results thus far. The U.K.’s Competition and Markets Authority (CMA) has blocked the deal, prompting Microsoft and Activision to announce their intention to appeal the decision. On the other hand, the European Union has given its seal of approval.
The Federal Trade Commission (FTC) in the United States has filed an appeal against the court’s decision allowing the merger, while a federal judge ruled in favor of Microsoft proceeding with the deal. The FTC aims to block the acquisition legally, and a hearing is scheduled to decide whether the deal should be temporarily blocked. Meanwhile, negotiations between Microsoft and the CMA have been put on hold as they explore potential modifications to address the regulator’s concerns.
FTC reportedly filed its lawsuit earlier than anticipated, with the aim of precluding a potential settlement that could have led to European regulators approving the deal.
Sony is opposing the acquisition, asserting that it would jeopardize confidential information sharing and disincentivize game development for the PlayStation platform. The legal battle intensifies, as Microsoft seeks to convince regulators of the benefits of the deal and its commitment to competition and consumer choice.
Amidst the challenges, Microsoft finalizes a 10-year deal to bring Call of Duty to Nintendo platforms, showcasing its commitment to making games available across multiple platforms. The company hopes to bring its pro-union approach to Activision Blizzard, highlighting its willingness to improve working conditions and foster a collaborative environment.
The future of the deal remains uncertain, with a federal hearing scheduled for June 22-23 to assess whether the acquisition should be blocked while the FTC and several regulators still deliberating. The outcome of this critical hearing holds significant implications for the future of the gaming industry and the proposed merger.
