Activision Blizzard Acquisition: FTC Files Appeal Against Ruling

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Post on Jan 31, 2025

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Activision Blizzard Acquisition: FTC Files Appeal Against Ruling, Delaying Microsoft Deal

The long-awaited acquisition of Activision Blizzard by Microsoft has hit another snag. The Federal Trade Commission (FTC) has filed an appeal against a recent court ruling that allowed the $69 billion deal to proceed, injecting fresh uncertainty into the future of gaming giants Activision Blizzard and Microsoft. This move significantly delays the completion of the merger and throws the future of popular franchises like Call of Duty, World of Warcraft, and Candy Crush into question.

FTC Challenges Judge's Decision

The FTC's appeal, filed on July 11, 2024, challenges Judge Jacqueline Scott Corley's decision to dismiss the agency's lawsuit seeking to block the merger. The judge argued that the FTC failed to demonstrate sufficient evidence that the acquisition would substantially lessen competition in the video game market. However, the FTC contends that the judge erred in her assessment and that the merger presents a significant threat to competition, potentially leading to higher prices, reduced innovation, and less choice for consumers.

<h3>Key Arguments in the FTC's Appeal</h3>

The FTC's appeal centers around several key arguments:

• Market Dominance: The FTC argues that Microsoft's acquisition of Activision Blizzard would give it an unfair advantage, creating a dominant market position, particularly in the cloud gaming market. They claim this will stifle competition and limit consumer choice.
• Lack of Consideration for Long-Term Impacts: The FTC maintains that the judge didn't fully consider the long-term consequences of the merger, including the potential for Microsoft to leverage its newly acquired properties to exclude rivals.
• Insufficient Remedy: The FTC also challenges the adequacy of the proposed remedies offered by Microsoft to mitigate antitrust concerns, suggesting they are insufficient to prevent harm to competition.

<h3>What This Means for Gamers and the Future of Gaming</h3>

The FTC's appeal creates considerable uncertainty for gamers worldwide. The acquisition's delay could mean:

• Delayed Game Releases: Potential delays or changes to the release schedules of future Activision Blizzard games.
• Pricing Uncertainties: Uncertainty around future pricing models for Activision Blizzard titles.
• Platform Exclusivity Concerns: Lingering concerns about the potential for Microsoft to make Activision Blizzard games exclusive to its Xbox ecosystem, limiting access for PlayStation and other platform players.

<h3>What Happens Next?</h3>

The appeal process could take months, even years, to resolve. The case will now proceed to the Ninth Circuit Court of Appeals, which will review the lower court's decision. This lengthy process adds substantial uncertainty to the timeline for the completion of the Microsoft-Activision Blizzard merger. While Microsoft maintains its confidence in the eventual completion of the deal, this legal battle represents a major setback and significantly impacts the gaming industry's landscape.

Stay tuned for further updates on this developing story. We'll continue to provide you with the latest information as it unfolds. Follow us for the latest news on the Activision Blizzard acquisition and its implications for the future of gaming.