LogInThe US Federal Trade Commission will check Microsoft's acquisition of Activision Blizzard for violations of antitrust laws. FTC Chair Lina Khan has particularly advocated her opposition to potential monopolies.
The US Federal Trade Commission (FTC) will handle an antitrust review of Microsoft's proposed acquisition of Activision Blizzard. Bloomberg reported about the matter referring to its sources.
The FTC headed up by Lina Khan will study the issue instead of the Justice Department, which also has authority over antitrust enforcement. The regulator will be interested in the possible consequences of the takeover for Microsoft's competitors in the gaming industry, according to Bloomberg.
Khan has long upheld the need for stricter regulation of large transactions, especially those conducted by technology giants. Under her leadership, FTC has ruled to block such takeovers as Nvidia’s proposed acquisition of Arm Holdings and Lockheed Martin’s deal to purchase Aerojet Rocketdyne Holdings. She believes that large IT companies can use their dominant position in one of the business areas to strengthen their own positions in other markets.
Microsoft and FTC officials have so far refrained from commenting on the issue.
Last month, Microsoft announced its intention to purchase Activision Blizzard, the publisher of Call of Duty, World of Warcraft, and Diablo, for $68.7 billion. The deal is expected to close by the end of fiscal Q4 2023. According to Microsoft, when the deal is executed, it will make the tech giant "third-largest gaming company by revenue, behind Tencent and Sony".
You can learn more about an antitrust review of Microsoft's proposed acquisition of Activision Blizzard by reading Bloomberg's report. Also, to find more about the acquisition, go here. Don't forget to join our new Reddit page, our new Telegram channel, follow us on Instagram and Twitter, where we are sharing breakdowns, the latest news, awesome artworks, and more.