Gizmodo: The FTC’s Effort to Block Microsoft’s Activision Acquisition Will Test Biden’s Antitrust Legacy

December 8, 2022 Media

It’s official. After months of rumors, the Federal Trade Commission this week voted 3-1 in favor of suing to block Microsoft’s estimated $69 billion acquisitionof video game giant Activision Blizzard.

The forthcoming legal battle represents the most significant antitrust challenge from the Biden-era FTC to date that has, up until now, had few tangible victories to back up its progressive, anti-monopolist rhetoric. The challenge’s success or failures could play a large factor in determining whether or the Bidenadministration can live up to its image as an aggressive antitrust maverick.

The FTC’s vote to block the Activision acquisition was praised by consumer advocacy groups, some of which had spent months urging regulators to take a more proactive approach towards large acquisition attempts.

“Microsoft’s attempt to acquire Activision is unlawful, and it’s not particularly close,” American Economic Liberties Project Executive Director Sarah Miller said in a statement sent to Gizmodo. “The FTC made the right call. Microsoft’s flurry of last-minute promises to not abuse the market power that they’d gain from this deal reinforce its underlying illegality.”