The US Federal Trade Commission (FTC) is likely to file an antitrust suit to block Microsoft’s $69 billion (approximately Rs. 5,63,500 crore) takeover bid for video game publisher Activision Blizzard, Politico reported Wednesday, citing people known are with the issue.
A lawsuit to challenge the deal is not guaranteed, and the FTC’s four commissioners have yet to vote down a complaint or meet with lawyers for the companies. the report saidadding that FTC staff reviewing the deal are skeptical of the companies’ arguments.
The FTC did not immediately respond to requests for comment from Reuters.
“We are committed to continuing to work with regulators around the world to allow the transaction to go through, but will not hesitate to fight to defend the transaction if necessary,” said an Activision Blizzard spokesperson. Any suggestion that the transaction could lead to anti-competitive effects is “completely absurd,” the spokesperson added.
Shares of Activision fell about 2 percent in extended trading after closing 1% higher.
Microsoft, maker of the Xbox gaming console, announced in January the deal to buy Activision, maker of Call of Duty and Candy Crush games, in the largest gaming industry deal in history as global technology giants close their jeopardizing claims to a virtual future.
Microsoft is betting on the acquisition to better compete with video game leaders Tencent and Sony.
The deal is also under scrutiny outside the US. The EU opened a large-scale investigation earlier this month. The EU competition enforcer said it would decide by March 23, 2023 whether to approve or block the deal.
Britain’s antitrust watchdog said in September it would launch a full-scale investigation.
The acquisition could hurt the industry if Microsoft refuses to give rivals access to Activision’s best-selling games, the UK antitrust regulator said.
The deal has drawn criticism from Sony, maker of the Playstation console, citing Microsoft’s control over games such as Call of Duty.
“Sony, as the industry leader, says it’s concerned about Call of Duty, but we’ve said we’re committed to making the same game available on both Xbox and PlayStation on the same day,” said Microsoft President and Vice Chairman Brad Smith. . said.
A spokesperson for Microsoft said: “We are prepared to address concerns from regulators, including the FTC, and Sony to ensure the deal is closed with confidence. We will continue to monitor Sony and Tencent in the market after the deal is done, and together Activision and Xbox will benefit gamers and developers and make the industry more competitive.”
© Thomson Reuters 2022
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