The epic of the titanic takeover of Activision Blizzard by Microsoft continues with a new turnaround, this time from a California court.
In the history of video games, there are few frescoes as complicated as that of the takeover of Activision Blizzard by Microsoft. This gargantuan acquisition, announced in January 2022 for the modest sum of $68.7 billion, is still being validated by the various global economic justice bodies. Indeed, the absorption of one of the biggest studios in the history of video games by the manufacturer of the Xbox could have serious consequences on the video game world, since some of the major franchises such as Call of Duty, Diablo, World of Warcraft or even Overwatch could eventually become exclusive to the Microsoft console, at the expense of Sony and its Playstation. Thus, more than 18 months after its announcement, the takeover of Activision Blizzard by Microsoft has still not been fully validated. We explain why.
On the eastern side of the Atlantic, the European Commission gave the green light for this takeover at the start of 2023, following the numerous pledges of fair competition offered by Microsoft in recent months. The green giant has indeed assured that the biggest licenses of the Activision Blizzard universe will continue their existence on Playstation for an indefinite period, ensuring fans of the Sony console the opportunity to be able to find their favorite games in the coming years.
On the other hand, for our English neighbors, the matter is more complex. The CMA (Competition and Market Authority) invalidated this famous takeover, citing in particular unfair competition rules, effectively blocking all acquisition processes last May. Decision against which Microsoft immediately launched an appeal procedure.
Which finally brings us to the western side of the Atlantic. This Wednesday, June 14, 2023, the FTC (Federal Trade Commission), the body that controls anti-competitive business practices in the United States, filed a request for an injunction against the acquisition of Activision Blizzard by Microsoft. This injunction is supposed to temporarily prevent the conclusion of the takeover which seemed imminent despite the decision of the British CMA. It is for this reason that the FTC filed this injunction with a California court, in order to slow down the acquisition process.
For Microsoft, this decision is a good sign because it will speed up the debate. Brad Smith, president of Microsoft, has also announced: “We are delighted to be able to defend our case in federal court. We believe that expediting the legal process in the United States will provide more choice and better competition in the video game market.” via Eurogamer
The next few weeks will therefore be decisive for Microsoft and Activision Blizzard, who will have to wait for the decisions of English justice and American justice before concluding their union. On the Microsoft side, we display unfailing confidence.