The US Federal Trade Commission (FTC) has decided to halt its legal challenge against Microsoft’s proposed acquisition of Activision Blizzard, a move that would make it the most expensive merger in video game history.
On December 8, 2022, the FTC publicly announced its intention to block the acquisition, citing Microsoft’s history of withholding content from its competitors in the gaming industry.
However, the United States District Court for the Northern District of California denied the FTC’s request for a preliminary injunction, which would have allowed the FTC to investigate the potential impact on competition and consumers.
Judge Jacqueline Scott Corley stated that the FTC failed to demonstrate a likelihood of success in proving that the merger would significantly reduce competition. In fact, the evidence presented pointed to increased consumer access to Activision content, including popular games like Call of Duty.
As a result, the case has been suspended and will not proceed to the FTC’s in-house court. However, there is a possibility that the FTC may re-file the challenge, as Microsoft and Activision Blizzard have extended the deadline for the acquisition to be finalized.
With this positive development, Microsoft and Activision Blizzard are now focusing on negotiations with the Competition and Markets Authority (CMA) in the United Kingdom.
“We are confident in successfully completing this acquisition and look forward to bringing more games to players worldwide,” said Phil Spencer, CEO of Microsoft Gaming. However, the CMA has expressed concerns about the potential impact on competition and has deemed Microsoft’s evidence insufficient to address these concerns.
In other gaming news, the second trailer for the upcoming Gran Turismo movie highlights the incredible story of professional racing driver Jann Mardenborough, the youngest winner of the GT Academy. Over 90,000 gamers participated in the academy, hoping to realize their racing ambitions.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
