Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

FTC Doubles Down on Challenge to Microsoft's Activision Deal in Appeals Court

Published Dec 06, 2023 04:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FTC Doubles Down on Challenge to Microsoft's Activision Deal in Appeals Court
 
MSFT
-0.32%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ATVI
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SONY
-0.46%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Quiver Quantitative - The U.S. Federal Trade Commission (FTC) is continuing its efforts to challenge Microsoft's (NASDAQ:MSFT) acquisition of Activision Blizzard (NASDAQ:ATVI), even after the deal's closure and approval by British regulators. The FTC, in an appeals court, argued against the lower-court judge's ruling, which deemed the $69 billion acquisition legal under competition law. The FTC's lawyer, Imad Abyad, contended that the lower court demanded excessively stringent proof of the deal's anti-competitive nature, whereas the FTC only needed to demonstrate Microsoft's potential to restrict Activision's games from rival platforms.

Abyad referred to Microsoft's historical precedent of making some Zenimax games exclusive after acquiring the company, suggesting a similar fate for Activision's games. The FTC's challenge is an uphill battle, particularly after losing the initial court case and with the European Union and Britain already approving the deal. This legal fight is part of the Biden administration's broader strategy to curb mergers and acquisitions that could negatively impact consumer prices in various sectors.

Market Overview: -The US Federal Trade Commission (FTC) challenged a federal judge's ruling approving Microsoft's $69 billion acquisition of Activision Blizzard. -The agency argued the judge held them to an excessively high standard, requiring proof of anticompetitiveness rather than mere ability and incentive to harm rivals.

Key Points: -FTC lawyer Imad Abyad argued that Microsoft's past behavior, including making Zenimax games exclusive, demonstrates potential for similar actions with Activision's titles. -Despite losing the lower-court case and facing EU and UK approval, the FTC continues its legal fight aligned with the Biden administration's push against mergers deemed harmful to consumers. -Microsoft lawyer Rakesh Kilaru argued the FTC case is "weak" and lacks sufficient evidence to prove Microsoft's incentive to withhold "Call of Duty" from competitors.

Looking Ahead: -Judges actively questioned both attorneys, with concerns about the FTC's reliance on concessions made to UK regulators and Microsoft's recent agreements with rivals like Sony (NYSE:SONY). -Antitrust experts predict a tough uphill battle for the FTC, likely requiring a finding of "clear error" on the part of the lower court judge.

The FTC initially filed a lawsuit in December 2022 to prevent the acquisition, fearing Microsoft would use Activision's games to dominate the gaming market and suppress competition for its Xbox consoles. However, a California federal judge ruled in July that the FTC failed to substantiate its claims, allowing the deal to proceed.

This article was originally published on Quiver Quantitative

FTC Doubles Down on Challenge to Microsoft's Activision Deal in Appeals Court
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email