US Trade Regulator to Review Deal Between Microsoft And Activision

According to a report, it will be the CFC and not the Department of Justice that investigates whether the acquisition harms competition.

The antitrust review of the proposed acquisition of Activision Blizzard Inc, creator of Call of Duty, by Microsoft Corp. will be carried out by the Federal Trade Commission (FTC), as reported by Bloomberg News, citing a person familiar with the process. . .

According to the report, it will be the CFC and not the Department of Justice that investigates whether the acquisition harms competition.

In a bid to tighten merger guidelines, the CFC and the Justice Department jointly said last month that industries had become increasingly concentrated and that a rise in merger filings in 2020 and 2021 indicated the situation it would get worse.

Days later, the CFC voted unanimously to sue to block a proposed $4.4 billion buyout of rocket motor maker Aerojet Rocketdyne Holdings by weapons company Lockheed Martin on antitrust grounds.

Microsoft, Activision and the CFC did not immediately respond to Reuters requests for comment.

The operation announced by Microsoft in January is the largest in its history and would become the largest cash acquisition in history. It would also bolster Microsoft’s firepower in the burgeoning video game market, where it faces leaders Tencent Holdings Ltd and Sony Group Corp.

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For its part, Sony announced Monday that it will acquire Bungie Inc, the original creator of the Halo video game and developer of Destiny, in a deal valued at $3.6 billion, the latest in a wave of consolidations in the video game sector.

Microsoft has so far avoided the kind of scrutiny Alphabet Inc and Meta Platforms Inc have faced, but this deal, which would make it the world’s third-largest gaming company, will put the Xbox maker on lawmakers’ radar. said Andre Barlow of the law firm Doyle, Barlow & Mazard LLC, following the settlement announcement.

 

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US Trade Regulator to Review Deal Between Microsoft And Activision - /10

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According to a report, it will be the CFC and not the Department of Justice that investigates whether the acquisition harms competition.

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