Microsoft's Acquisition Of Activision Blizzard Is Now Under Scrutiny By Regulators
Despite both agreeing to the $70billion acquisition of Activision Blizzard by Microsoft, the FTC has now stepped in to inspect the deal
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It's all about the big deals in the gaming space in recent months, but even with both sides deciding to acquire or be acquired it doesn't mean the deal is done. Especially in an aquisition as wild as this one, regulatory boards have to become involved to insure that one company is not monopolising the market. Many have already speculated that Call Of Duty would go Xbox exclusive, but as the world's largest gaming franchise, if Microsoft intended to corner the market on the FPS, it would be unlikely that the deal would be able to pass under scrutiny. For the record Microsoft, Activision and Sony have all expressly said that the franchise will remain multiplatform at least for the time being.
In the United States, the Justice Department is the usual regulatory body which oversees these matters. However according to a report by Bloomberg, The Federal Trade Commission will now watch the deal to insure that competition isn't harmed in the marketplace. The FTC is in charge of making sure that no single company takes over a market, in this case gaming, therefore giving themselves the power to decide pricing and standards.
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Lina Khan, Chairperson of the FTC has been more forceful than previous chairs in reviewing deals by major tech companies. Since she took charge of the board she has sued to block two major takeovers over fears of monopolisation. Firstly, Nvidia's acquisition of Arm which would see the company monopolise the production of computer chips. The second was Lockheed Martin from purchasing Aerojet Rocketdyne, which creates systems for the aerospace and defence industries.
The FTC isn't the only major board which the deal will have to be approved by. As a global company, the acquisition will also have to pass by the European and Chinese regulatory boards in order to make sure it maintains the ability to work within these major spaces.
Featured Image Credit: Lina Khan / MicrosoftTopics: Microsoft, Activision Blizzard