Microsoft, Activision Blizzard Merger Probed By FTC

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Microsoft Activision Blizzard Merger FTC Investigation Overview: 

• Who: The Federal Trade Commission wants more information about a proposed $68.7 billion merger between Microsoft and Activision Blizzard, according to a filing with the U.S. Securities and Exchange Commission. 
• Why: The investigation follows concerns the proposed deal could stifle competition, raise market prices and damage consumer privacy, among other things.
• Where: The merger between Microsoft and Activision will affect video game players worldwide.

The Federal Trade Commission (FTC) is requesting more information about a proposed $68.7 billion merger between Microsoft Corp. and Activision Blizzard. 

The FTC’s probe into the proposed merger between the Microsoft and World of Warcraft creator was revealed in a filing the latter filed with the U.S. Securities and Exchange Commission (SEC) on Mar. 21.

Microsoft agreed to purchase Activision Blizzard in an all cash deal in January, and the merger is expected to be completed in full by June 2023, according to the SEC filing. 

The FTC, meanwhile, has asked both Microsoft and Activision Blizzard to provide documents related to the proposed deal, according to the SEC filing. 

Activision Blizzard also said in the filing that the merger can not be officially completed until it and Microsoft file reports with both the FTC and the Antitrust Division of the U.S. Department of Justice. 

Microsoft has so far committed to allowing its apps sold on the Microsoft Store to be purchased by outside payment methods and making sure its apps don’t have an advantage over others, Law360 reports. 

Microsoft Won’t Pull Activision Blizzard Titles From Other Consoles, It Says

The tech giant has also promised not to pull popular Activision Blizzard titles, such as Call of Duty, from other consoles, including Sony’s Playstation and Nintendo’s Switch. 

Microsoft will also refrain from interfering with legitimate communication between developers and users and using third-party data that is not available to the public to its benefit, Law360 reports. 

The promises mimic some of the new provisions put in the Open App Markets Act, which was proposed following numerous complaints against Google and Apple’s app store policies and is currently in front of Congress.

Advocacy and labor groups have asked the FTC to scrutinize the deal over concerns that it could end up hurting competitors, raising prices, damaging privacy, decreasing independent repair options and impeding potential unionization, Law360 reports. 

Activision Blizzard faced adversity in August 2021 after it was targeted by a class action lawsuit claiming the company’s stock price plummeted when allegations that it had a toxic work environment came to light. 

The complaint followed accusations a month earlier by a California employment agency that Activision Blizzard had created a “frat boy culture” at its workplace. 

Activision would ultimately agree to pay $18 million to settle a probe by the Equal Employment Opportunity Commission into the company’s workplace culture, in September. 

Have you played video games developed by Activision Blizzard? Let us know in the comments! 

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