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Microsoft’s Activision Blizzard Acquisition Clears FTC Hurdle; Paves Way for $69 Billion Deal

Microsoft has until July 18 to finish the $69-billion deal

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Aditya Saikrishna
Aditya Saikrishna
I am 21 years old and an avid Motorsports enthusiast.

UNITED STATES: In a significant development for the gaming industry, a federal judge has granted Microsoft approval to acquire video game developer Activision Blizzard.

The ruling by U.S. District Judge Jacqueline Scott Corley denies the Federal Trade Commission’s (FTC) request for a temporary injunction, allowing Microsoft to move forward with the deal. However, the company still faces an antitrust lawsuit filed by the FTC.

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During the five-day hearing, the FTC argued that the merger would give Microsoft the power to make popular Activision games, including “Candy Crush,” “World of Warcraft,” and “Call of Duty,” exclusive to its Xbox platform. 

The regulator claimed this exclusivity would limit competition by blocking out competitors such as Sony and Nintendo. 

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However, Judge Corley disagreed with the FTC’s assertions, stating that the merger would provide consumers greater access to Activision content, including the trendy “Call of Duty” franchise.

While Microsoft has received the green light from the U.S. court, it still faces challenges securing merger approval in the United Kingdom. 

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The Competition and Markets Authority (CMA) previously blocked the deal in April due to concerns that Microsoft’s dominance in the cloud gaming market would create a monopoly. 

Following the FTC decision, Microsoft and the CMA have agreed to pause the legal battle and explore modifications to the deal that address the regulator’s concerns. This pause is pending approval but indicates a willingness on all parties’ part to find a resolution.

The clock is ticking for Microsoft, as the company must finalize the $69 billion deal by July 18 to avoid potential fees or the need to renegotiate terms with Activision. 

If successful, this acquisition will have significant implications for the gaming industry and mark a triumph for Microsoft’s efforts to navigate the increasingly stringent review processes imposed by regulatory agencies. 

The deal has the potential to boost the industry and pave the way for new developments in gaming technology. As Microsoft continues to navigate regulatory challenges, industry watchers eagerly await the outcome, which will shape the future landscape of the gaming market. 

The potential acquisition of Activision Blizzard by Microsoft represents a significant consolidation within the industry and could have far-reaching effects on competition and consumer access to popular gaming titles.

Also Read: EU Launches Antitrust Probe Against Microsoft Following Slack’s Complaint

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