The next regulator who is currently looking at this is the UK's Competition and Markets Authority (CMA). This review went through two phases of in-depth investigation, before the FTC issued a lawsuit on Decemin an attempt to block the deal. The first is the US regulator the Federal Trade Commission (FTC). There are regulatory bodies all over the world, but there are three main ones that Microsoft will want approval from to complete the buy-out. Regulatory bodies exist to try and make sure such deals don’t result in any antitrust issues, where one company can become overly dominant, or competition is harmed in such a way that it could lead to fewer choices, higher prices and/or less innovation.Ĭonsidering the scale and size of the deal, Microsoft would have to obtain antitrust approval before taking ownership of Activision Blizzard. "This deal has the potential to impact everyone, from the smallest indie developer to the big gaming giants" It has the potential to impact everyone, from the smallest indie developer to the biggest names in the business, and, of course, consumers. It's a potentially game-changing deal that could not just transform things for Microsoft and Xbox, but the entire games industry.
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This deal is - to use a professional business term - massive. Why does Microsoft need approval to buy Activision Blizzard?
Globally, some 154 million people play Activision games every month, the FTC said.
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The agency also noted that after Microsoft's recent purchase of ZeniMax - parent company of software developer Bethesda Softworks, the software giant decided to make several Bethesda titles, including Starfield and Redfall, exclusive to Xbox, despite assuring European regulators it had no intention to do so. The FTC noted that Activision, maker of best-selling games such as Call of Duty and World of Warcraft, was among "a very small number of top video game developers" that publish titles for multiple devices, including consoles, PCs and mobile. The FTC voted 3-1 to file a lawsuit to stop the deal, with the three Democratic commissioners voting in favor and the sole Republican voting against.
In December, the agency said Microsoft getting Activision would undermine competition for the software giant's Xbox gaming console. "We're not quite there yet."īlocking the deal in the UK comes four months after the Federal Trade Commission also raised concerns about Microsoft buying Activision. "Activision can't unilaterally terminate the deal, as language in the merger agreement specifies that regulatory restraint has to be final and non-appealable for that option to be on the table," Griffin said. Microsoft technically only has two options now, he said: submit an appeal to British regulators or spike the Activision purchase altogether. The British decision is most likely a deal-killer, Clay Griffin, analyst for SVB MoffettNathanson, said in a research note Wednesday. Activision also fired back, saying it would "work aggressively with Microsoft to reverse this on appeal." Deal-killer?
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