Microsoft's acquisition of Activision Blizzard is subject to Federal Trade Commission review

Bloomberg reports that Microsoft's plans to acquire Activision Blizzard will be reviewed by the Federal Trade Commission (FTC), an antitrust authority in the United States, under antitrust laws.

Microsoft Deal for Activision to Be WESTERN by FTC in US --Bloomberg
https://www.bloomberg.com/news/articles/2022-02-01/microsoft-deal-for-activision-to-be-reviewed-by-ftc-in-us

Microsoft's Activision Blizzard acquisition to be reviewed by FTC --Polygon
https://www.polygon.com/22912444/microsoft-acquisition-activision-blizzard-ftc-review

On January 18, 2022 local time, Microsoft announced that it would acquire Activision Blizzard, a major game maker. Activision Blizzard is a leading game maker with a studio that develops a number of popular titles such as Call of Duty series , Warcraft series , Diablo series , Overwatch, etc. It ranks 7th in the world in terms of sales, surpassing well-known companies such as Nintendo and Electronic Arts. However, Activision Blizzard was in a critical situation, including being sued by the California Department of Fair Employment and Housing (DFEH) for sexual harassment. It is reported that the acquisition amount by Microsoft is as much as 68.7 billion dollars (about 7.9 trillion yen).

Microsoft announces acquisition of Activision Blizzard for about 8 trillion yen, will CEO Cotic, who is in the midst of sexual harassment problems, retire after the acquisition is completed-GIGAZINE

According to the person who provided information to Bloomberg, Microsoft's acquisition plan will be overseen by FTC on behalf of the Justice Department. The Justice Department and FTC share responsibility in the review of Microsoft's acquisition, and it seems that they have already reached an agreement on who will be in charge of the review.

FTC Chairman Lina Khan has advocated a stronger approach when reviewing acquisitions by major technology companies. 'By leveraging our strengths in one business area, companies can establish themselves in other markets,' Khan said. In fact, Kahn has blocked two acquisitions by major tech companies so far, one by NVIDIA for Arm and the other by Lockheed Martin for Aerojet Rocketdyne.

Federal Trade Commission filed suit for NVIDIA's injunction to buy Arm-GIGAZINE

On January 18, 2022, Khan and Assistant Attorney Jonathan Kanter of the Department of Justice will tighten the review of acquisition plans, saying that mergers and acquisitions could worsen market monopoly and oligopoly. Was stated . Both authorities say they are particularly focused on acquisitions by tech companies.

The review will focus on the impact of the combination of Activision Blizzard's game portfolio with Microsoft's consoles and hardware systems. FTC will be able to conduct a detailed examination on 'How will Microsoft restrict access to Activision Blizzard titles and affect rival companies by acquiring Activision Blizzard?'

Microsoft's most recent significant acquisition was the acquisition of software maker Nuance Communications for $ 17 billion. The acquisition was reviewed and approved by US and European regulators in the summer of 2021.

Microsoft and FTC declined to comment on the takeover review.