The FTC has taken legal action against the deal, alleging potential harm to video game market competition. Microsoft, however, contends that it will benefit consumers with broader access to games and services.
To address the issue, Microsoft and Activision Blizzard jointly requested the FTC to drop the case on July 19, 2023. They argued the FTC’s concerns lacked substantial evidence and that competition would not be negatively impacted.
The FTC is expected to decide on the motion in the following weeks. If they decline to withdraw the case, it will proceed to trial.
A Bloomberg Law report suggested an 80% chance of the deal going through after a US judge’s approval. Nevertheless, uncertainty remains due to the pending FTC case, leaving the possibility of the deal being blocked.
The FTC will have the final say in approving the deal. They’ll consider its impact on competition, innovation, and consumers.
Regarding competition, the FTC aims to prevent Microsoft from gaining excessive market power, potentially reducing competition.
Innovation is crucial, as the FTC seeks to avoid stifling it in the video game market. They’ll assess if the deal could deter new companies or hinder existing ones from competing with Microsoft.
Consumers’ best interests will be taken into account. The FTC will evaluate if the deal would lead to higher prices, limited choices, or declining game quality.
The FTC’s decision will be meticulously weighed based on these factors. While approval is possible, rejection is equally likely, with significant implications for the gaming industry.
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