FTC May Sue Microsoft Over its Acquisition of Activision

A report by Politico revealed that FTC had completed the major parts of it’s investigation against Microsoft regarding it’s acquisition deal of Activision.

This may now lead the Commission to file an antitrust lawsuit against Microsoft as soon as next month. Besides FTC, the UK and EU competition regulators are investigating the same acquisition deal on the allegations of Microsoft getting an unfair advantage through this in the video games market.

FTC Suing Microsoft Over Activision Deal

Microsoft’s acquisition of Activision Blizzard could become one of the highly controversial deals this decade, as many argue that Redmond may gain an unfair advantage by this in the video game market. One among those advocating this is Sony – a direct competitor of Microsoft’s Xbox.

Sony earlier accused Microsoft, that they may restrict certain Activision games like Call of Duty exclusive to Xbox, thus exploiting the market competition. While the Xbox head clarified this wouldn’t be the case, Sony is still reluctant.

This led the FTC to pursue an investigation into this deal, where Microsoft has reportedly failed to convince the FTC staff – leading to a possible lawsuit against the former as soon as next month. While the agency’s commissioners have yet to vote on filing a complaint, it’s most likely to happen, says Politico.

The report further states that FTC is done with the major parts of the investigation, which includes the depositions of Microsoft’s Satya Nadella and Activision CEO Bobby Kotick. Besides FTC, the UK’s competition regulator, Competition and Markets Authority (CMA), and European Union’s equivalent body are investigating the deal too.

With all these things around, Microsoft’s acquisition of Activision Blizzard may not happen until later next year.

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