Microsoft yesterday announced its acquisition of Activision Blizzard. The deal will conclude in 2023, which is when the transition will complete. Just a few hours after the announcement, the US government’s Department of Justice (DOJ) and the Federal Trade Commission (FTC) launched a joint review of antitrust merger guidelines. Also Read - Window 11 update: Microsoft to roll out Android apps to 5 new countries
Under this joint review, the DOJ and FTC will go over the merger guidelines to improve the ability of antitrust agencies to assess “unlawful mergers” and enforce regulations. The joint review was announced by FTC chair Lina Khan during a joint livestream. Also Read - Microsoft working on a low-cost streaming device to compete with Apple TV
FTC and @JusticeATR seek to strengthen enforcement against illegal mergers. Agencies launch joint public inquiry aimed at modernizing merger guidelines to better detect and prevent anticompetitive deals: https://t.co/kPqDvOqDV7 /1 Also Read - Minecraft’s big wilderness update is coming on June 7
— FTC (@FTC) January 18, 2022
Recent evidence indicates that many industries across the economy are becoming more concentrated and less competitive – imperiling choice and economic gains for consumers, workers, entrepreneurs, and small businesses. /2
— FTC (@FTC) January 18, 2022
These problems are likely to persist or worsen due to an ongoing merger surge that has more than doubled merger filings from 2020 to 2021. /3
— FTC (@FTC) January 18, 2022
To address mounting concerns, the agencies are soliciting public input on ways to modernize federal merger guidelines to better detect and prevent illegal, anticompetitive deals in today’s modern markets. /4
— FTC (@FTC) January 18, 2022
Request for Information is available at: https://t.co/yC8zTQeVem.
Comments must be received no later than Monday, March 21, 2022. Information will be used by the agencies to consider updates and revisions to the guidelines /5
— FTC (@FTC) January 18, 2022
Due to the massive size of this deal, it was expected that relevant authorities would come in play. During an interview with VentureBeat, Activision CEO Bobby Kotick did touch on the topic stating Microsoft will “drive the bus, obviously, on the antitrust issues,” when he was inquired about the implications of the deal.
It is worth noting, that the timing of the announcement of the review seems a bit suspicious, considering that it was announced within hours of the biggest deal in the history of the gaming industry being announced. It remains to be seen what changes will the review bring about and how they will affect Microsoft’s acquisition of Activision Blizzard.
After the DOJ and FTC joint livestream ended and the Q&A section was opened, questions regarding the Microsoft Activision Blizzard deal were raised. However, both the DOJ and FTC refused to comment.
While a lot of questions are being raised related to Microsoft’s plans for this deal, Xbox boss Phil Spencer has been stating that this deal is not meant to “pull communities away” from PlayStation. However, people are still having trust issues considering that similar language was used by the company following the acquisition of Bethesda. But as we all know, the company after the deal was completed announced that it will be converting some of the most popular titles to Xbox exclusives. Similar treatment with some Activision games is also expected.
Moreover, it is also known that the Game Pass will soon get the whole Activision Blizzard library.
Apart from the DOJ and FTC, we also expect the deal to be reviewed by authorities from other countries too, including the European Commission.
