Sources: the FTC plans to file an antitrust lawsuit to block Microsoft's $69B Activision Blizzard deal, as FTC staff are skeptical of the companies' arguments
The Federal Trade Commission is likely to file an antitrust lawsuit to block Microsoft's $69 billion takeover …
Politico Josh Sisco
Context & Ripple Effects
The deal’s U.S. review was assigned to the FTC early in the process, with the agency expected to examine harm to Microsoft’s gaming rivals. This report signals that staff skepticism is becoming an enforcement case: the FTC subsequently filed its challenge to the acquisition, while the European Commission was later reported to be preparing its own objections.
First-order effects
- Microsoft and Activision Blizzard must prepare to defend the $69 billion transaction in U.S. antitrust litigation rather than rely on the review process ending without a lawsuit.
- The FTC is advancing a theory centered on whether the acquisition would suppress Microsoft’s gaming competitors, putting the companies’ assurances directly at issue.
Second-order effects
- The planned U.S. challenge adds pressure to the parallel European review, where regulators were reported to be preparing a formal statement of objections.
- Microsoft’s defense gains importance beyond this transaction because related coverage notes that courts have been skeptical of challenges to vertical mergers, where the parties do not directly compete.
Third-order effects
- If enforcers sustain a case based on harm to gaming rivals from a vertical acquisition, large platform owners will face more exacting review when buying major content suppliers.
- The dispute tests whether antitrust agencies can translate concerns about platform control and exclusive access into legal theories that survive courts’ scrutiny of vertical-merger challenges.
The trend: Gaming consolidation is becoming a test case for tougher antitrust enforcement of platform acquisitions that combine distribution with must-have content.
Related: FTC · Microsoft · FTC sues to block Microsoft’s Activision Blizzard acquisition · FTC takes oversight of the Activision review · European Commission prepares objections
Related Coverage
- FTC likely to file lawsuit to block Microsoft bid for Activision RTÉ
- FTC Expected to Challenge Microsoft's Activision Blizzard Deal PCMag · Matthew Humphries
- FTC reportedly considering lawsuit against Microsoft Activision deal GamesIndustry.biz · Danielle Partis
- FTC “likely” to file lawsuit challenging Microsoft Activision deal - report TrueAchievements · Sean Carey
- Battlefield Proves it's Impossible to Compete with Call of Duty, Sony Says GamingBolt · Shubhankar Parijat
- FTC Reported to ‘Likely’ Fight Microsoft's Acquisition of Activision Blizzard iPhone in Canada Blog · Steve Vegvari
- FTC ‘likely to file antitrust lawsuit’ to block Microsoft's Activision deal, report claims Video Games Chronicle · Jordan Middler
- Microsoft's $69 billion buyout of Activision likely to be blocked by FTC Pocket-lint · Oliver Haslam
- US FTC considering antitrust lawsuit against Microsoft over Activision Blizzard deal, sources claim Rock, Paper, Shotgun · CJ Wheeler
- The FTC might file an antitrust lawsuit to block Microsoft's Activision purchase Engadget · Mariella Moon
- Microsoft's, Sony's Activision merger statements: Who's the real threat? MSPoweruser · Sharron Bennet
- Activision Blizzard, Microsoft to Face Toughest Antitrust Probe Yet The Jacob Wolf Report · Jacob Wolf
- FTC lawsuit could stop Microsoft's $69 billion takeover of Activision TechSpot · Rob Thubron
- Microsoft's Activision Blizzard Acquisition ‘Likely’ To Be Blocked By The FTC TheGamer · Joshua Robertson
- Apple to Redress Discrimination against Korean App Developers Businesskorea · Kim Eun-jin
- FTC Might File Antitrust Lawsuit Over Microsoft's Activision Acquisition Game Rant · Neville Lahiru
- FTC “Likely” To File Antitrust Lawsuit Over Microsoft's Activision Blizzard Acquisition - Report GameSpot · Chris Pereira
- Sony Responds to Microsoft's Call of Duty Deal, States Battlefield Can't Compete and PS+ “Lags Behind” Xbox Game Pass Wccftech · Ule Lopez
- Activision Deal May Fall Apart As FTC Considers Antitrust Lawsuit Appuals.com · Muhammad Zuhair
- Microsoft's Activision Blizzard Deal ‘Likely’ Faces A Lawsuit From The Feds To Try And Block It Forbes · Kris Holt
- Report: FTC “likely” to file suit to block Microsoft/Activision merger Ars Technica · Kyle Orland
- Report: FTC “likely” to challenge Microsoft's purchase of Activision Blizzard Game Developer · Bryant Francis
- The FTC could challenge Microsoft's Activision purchase by December The Verge · Mitchell Clark
- The FTC Is Reportedly ‘Likely’ to File an Antitrust Lawsuit to Block the Microsoft and Activision Deal IGN · Adam Bankhurst
- Report: The FTC may try to block Xbox's Activision Blizzard acquisition Windows Central · Zachary Boddy
- Politico: FTC Is Likely to Challenge Microsoft's $69 Billion Activision Acquisition Daring Fireball · John Gruber
- FTC ‘likely’ to file antitrust lawsuit to block Microsoft's acquisition of Activision Blizzard BGR · Joe Wituschek
- Report: Feds ‘Likely’ To Fight Microsoft's Purchase Of Activision Blizzard Kotaku · Luke Plunkett
- FTC likely to file lawsuit to block Microsoft's $69 bln bid for Activision - Politico Reuters · Tiyashi Datta
- Report: FTC “likely” to block Microsoft Activision deal PC Games Insider · Alex Calvin
- Report: US Trade Commission might challenge Microsoft buying Activision Blizzard Gamereactor UK · Jonas Mäki
- Apple to end policy that charged South Korean devs higher App Store commissions The Register · Laura Dobberstein
- The New FTC Section 5 Policy Statement: Full of Sound and Fury, Signifying Nothing? Truth on the Market · Alden Abbott
- Microsoft CEO: ‘We will be in gaming going forward’ even if Activision deal doesn't happen MSPoweruser · Sharron Bennet
Discussion
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Pure Xbox
Ben Kerry
on x
Report: US FTC ‘Likely’ To File Lawsuit Against Xbox's Activision Blizzard Deal
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Gameranx
Todd Black
on x
The FTC Might Stop Microsoft's Purchase Of Activision Blizzard
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@jasonschreier
Jason Schreier
on x
Thanksgiving evening bombshell news. Nobody knows what the result of an antitrust lawsuit might be, but the landscape is different than it was when the DOJ lost its case against AT&T/Time Warner (and the NYT just ran a story last week about how that was the “worst merger ever") h…
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@danieljkelley
@danieljkelley
on x
Oh my. https://www.politico.com/...
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@techwontsaveus
@techwontsaveus
on x
“The Federal Trade Commission is likely to file an antitrust lawsuit to block Microsoft's $69 billion takeover of ... Activision Blizzard, maker of the hit games Call of Duty and Candy Crush, according to three people with knowledge of the matter.” https://www.politico.com/...
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@wbm312
Whitney Merrill
on x
Honestly if all the things for the FTC to care about, this one feels meh in comparison to some other really horrible antitrust behavior in other industries. I wish the FTC would do something about Ticketmaster, Comcast, Disney, telecommunications generally, local news... https://…
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@sarthakgh
Sar Haribhakti
on x
Lina Khan came onto the scene with much fanfare and a new dumb approach to antitrust (basically punishing bigness and being vindictive). Big tech critics loved her. Nothing accomplished. Now FTC is leaking they are back to doing standard FTC things https://www.politico.com/...
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@fosspatents
Florian Mueller
on x
Google allegedly argues that Microsoft degrades the Game Pass experience on Android, but there is no iOS version ajd gamers always prefer a large screen. Mobile is often the only option. If Google considers games so key to Android's success, it should abolish its app tax. https:/…
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@charlieintel
@charlieintel
on x
NEW: Politico is reporting the FTC will file an antitrust lawsuit against Microsoft to prevent their acquisition of Activision Blizzard https://www.politico.com/... https://twitter.com/...
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@johnxuandou
@johnxuandou
on x
It's wild how many people are: 1) Mad about this even being discussed and not just unilaterally allowing Microsoft to buy Actiblizz. 2) Posting Whataboutisms of previous acquisitions when the FTC was under different and worse management. https://twitter.com/...
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@geronimo_73_
@geronimo_73_
on x
The Federal Trade Commission is likely to file an antitrust lawsuit to block Microsoft's $69 billion takeover of video game giant Activision Blizzard Microsoft said it “is prepared to address the concerns of regulators, including the FTC” https://www.politico.com/... $MSFT $ATVI …
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@politico
@politico
on x
This would be the FTC's biggest move yet under Lina Khan to rein in the power of the world's largest tech companies. It would also be a major black mark for Microsoft, which has positioned itself as a white knight of sorts on antitrust issues in tech. https://www.politico.com/...
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@karlbode
Karl Bode
on x
it's very unfamiliar and weird having an FTC that actually cares about mindless consolidation and “growth for growth's sake” megadeals https://twitter.com/...
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@tomwarren
Tom Warren
on x
The FTC is “likely” to file an antitrust lawsuit to block Microsoft's Activision Blizzard deal, reports Politico. If the FTC progresses with a case against Microsoft it could reportedly come as soon as next month https://www.politico.com/...
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@fosspatents
Florian Mueller
on x
Can't see how this would change anything about Microsoft having kept clear of #antitrust trouble for about 20 years. To fight for approval of a proposed merger—no matter the outcome—is not comparable to being held in violation of the antitrust laws over past unilateral conduct. h…