On July 11, 2023, a federal judge in San Francisco denied the Federal Trade Commission’s (FTC) request to temporarily block Microsoft’s acquisition of Activision Blizzard. The deal is worth $69 billion and would be the largest ever in the gaming sector.
In her ruling, Judge Jacqueline Scott Corley said that the FTC had failed to show that the deal was likely to result in a substantial reduction in competition that would harm consumers. She also noted that the FTC had not provided any evidence that Microsoft would make Activision games exclusive to its own game consoles or diminish the experience of Activision games on rival services.
The FTC has said that it will appeal the ruling. However, for now, the deal is still on track to close by July 18, 2023.
There are several reasons why the FTC might have wanted to block the deal. Firstly, they believe that the deal would give Microsoft too much control over the gaming industry. Secondly, they worry that Microsoft might use its market power to make Activision games exclusive to its own platforms. Lastly, they believe that the deal would harm consumers by reducing competition and driving up prices.
However, Microsoft has argued that the deal would actually be good for consumers. They say that it would allow them to invest more in making games and that it would create new opportunities for developers.
The FTC’s appeal is still pending, so it’s possible that the deal could still be blocked. However, for now, it looks like the deal is on track to close.
