In a significant development, Microsoft has overcome major obstacles in its plan to acquire video game maker Activision Blizzard. A U.S. judge, Jacqueline Scott Corley, has given approval to the $69 billion deal, dismissing concerns about potential harm to consumers. This decision has contributed to a surge in Activision’s stock by 10%, while Microsoft’s shares also rose. Meanwhile, the British regulator, Competition and Markets Authority (CMA) has indicated that it may reconsider its opposition to the deal and is willing to review Microsoft’s proposals to address antitrust concerns in the UK.
The U.S. Federal Trade Commission (FTC) had previously argued against the acquisition, expressing concerns that Microsoft’s ownership of Activision would enable them to restrict access to games, such as the popular “Call of Duty,” for rival console makers like Nintendo and Sony. However, Judge Corley disagreed with these assertions, stating that the FTC had not demonstrated that Microsoft would likely remove Call of Duty from Sony PlayStation or substantially reduce competition in video game library subscription and cloud gaming markets.
While the FTC has until Friday to appeal the decision, an FTC spokesperson expressed disappointment in the outcome and emphasized the threat the merger poses to competition in cloud gaming, subscription services, and consoles. It is expected that the FTC will announce its next steps soon, and there are indications that the agency is considering appealing the court’s ruling.
