United States: Regulators in the US have sought a court injunction to halt Microsoft’s $69 billion acquisition of Activision Blizzard, the publisher of popular video game franchise Call of Duty. The US Federal Trade Commission (FTC) expressed concerns that the deal, which would be the largest in the history of the gaming industry, could significantly reduce competition in the sector. While the European Commission approved the acquisition, the UK blocked it earlier due to competition concerns.

A trial in the US is scheduled to begin in August, during which the FTC will evaluate whether the proposed acquisition violates antitrust laws. Microsoft and Activision require approval from regulatory bodies in the UK, the EU, and the US for the deal to proceed.

The European Commission approved the acquisition, citing Microsoft’s commitment to offering 10-year free licensing deals that would ensure fair competition by providing European consumers and cloud game streaming services access to Activision’s games. However, the UK’s Competition and Markets Authority (CMA) blocked the deal in April, fearing it would lead to reduced innovation and limited choice for gamers.

Mr. Brad Smith, President of Microsoft, criticized the CMA’s decision and announced plans to appeal. In response to the FTC’s announcement, Smith expressed gratitude for the opportunity to present their case in federal court and stressed that the legal process would ultimately bring more choice and competition to the market.

Microsoft’s bid for Activision is viewed as crucial in its efforts to catch up with rival Sony in the gaming industry. The acquisition aligns with Microsoft’s strategy of investing in its Xbox Game Pass service, often dubbed the “Netflix of games,” which offers game subscriptions and cloud gaming as the future of the gaming industry. Microsoft believes that accessing games through subscriptions and streaming via cloud gaming will replace traditional one-off purchases.

The trial in the US will shed light on the fate of the acquisition, as regulators weigh the potential implications on competition and the future of the gaming market.

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