FTC's Last Stand Against Microsoft's Activision Deal Ends in Defeat
The US FTC faces a second blow as its appeal against Microsoft's $69 billion game-changer acquisition bites the dust.
The courtroom drama that could have reshaped the gaming landscape has drawn to a close. What began as a fierce challenge from the US Federal Trade Commission (FTC) against a colossal acquisition ended in a pivotal defeat, marking a landmark moment for Microsoft and Activision Blizzard.
Battleground: The $69 Billion Acquisition
In July 2023, the arena was set when the US District Court for the Northern District of California decisively denied the FTC’s motion for a preliminary injunction—an injunction that, if granted, would have held back the $69 billion merger. As stated in Video Games Chronicle, this was a deal that promised to redefine gaming’s competitive terrains.
FTC’s Pillars of Argumentation
The FTC stood firm, appealing the court’s decision, convinced that Microsoft’s acquisition of Activision would spell disaster for competition, particularly concerning access to popular titles like Call of Duty. However, their claims couldn’t pierce through the appeals court’s defenses.
Appeals Court Verdict: A Defining Judgment
In a confirming stroke by the 9th Circuit US Court of Appeals, the court ascertained that Microsoft hadn’t crossed any competitive boundaries. The FTC struggled to substantiate their fears that Microsoft would block rival companies or diminish competition in the gaming subscription and cloud streaming sectors.
Industry Standards and Practices
One of the FTC’s main contentions, the potential exclusivity of Activision games to Xbox, withered under scrutiny. The court highlighted that practices like exclusivity aren’t alien to the gaming world, painting a picture of commonality wherein giants like Nintendo and Sony also dance to similar tunes with their arks of exclusives.
Harmonizing Platforms Post-Acquisition
In a testament to its prior assurances, since clinching the deal, Microsoft not only kept Call of Duty accessible on PlayStation but expanded its console bonds. Titles such as Forza Horizon 5 and Sea of Thieves, once Xbox exclusives, now grace the screens of Sony’s consoles. Insert a glance at the horizon, where Gears of War: Reloaded ventures into PS5 territories this summer.
Conclusion: A Closed Chapter or Open Book?
The FTC’s ambitious pursuits have cast a long shadow over this acquisition saga, raising questions that resonate within the depths of regulatory and corporate realms. But as shadows recede, the book on Microsoft’s acquisition of Activision is closed, with new chapters already unfolding in the gaming industry script.
Join us in witnessing how these altered landscapes will impact gamers and stakeholders alike!
