In a legal saga unfolding in the nation’s capital, U.S. antitrust regulators are back in the ring, challenging a federal judge’s previous endorsement of Microsoft’s colossal $69 billion acquisition of gaming giant Activision Blizzard. The deal, which sealed its fate on October 13 this year after securing approval from British regulators, faces renewed scrutiny as the Federal Trade Commission (FTC) contends that the lower-court ruling was an oversight.
The antitrust enforcers are set to make their case before a three-judge appeals court panel in California, arguing that the initial judge set an unreasonably high bar for the FTC. Rather than having to prove the deal’s outright anticompetitive nature, the FTC asserts that the standard should only require establishing serious competitive concerns.
Despite the uphill battle, with the EU and Britain already greenlighting the acquisition, the FTC persists in its efforts. The legal tussle is part of a broader initiative by the Biden administration to combat mergers and price hikes affecting consumers across various sectors.
The FTC’s arguments extend to the judge’s reliance on Microsoft’s agreements with gaming rivals, contending that these agreements shouldn’t serve as conclusive proof that the merger would have no adverse effects on competition.
Microsoft, in response, is anticipated to counter the FTC’s claims, asserting that the judge’s ruling stands and that the FTC has failed to demonstrate any erroneous judgments. Microsoft further contends that the FTC has not substantiated claims that the tech giant had an incentive to withhold Activision’s blockbuster game, “Call of Duty,” from competing gaming platforms.
The appeals panel comprises Daniel Collins and Danielle Forrest, both nominated by former President Donald Trump, alongside Jennifer Sung, appointed by President Joe Biden.
As the legal drama unfolds, the spotlight remains on this high-stakes battle, shaping the landscape of the gaming industry’s future and the broader regulatory environment.
