Microsoft is trying to convince regulators around the world to clear its $68.7 billion acquisition of Activision Blizzard. Amid concerns about the impact on industry competition, and in the face of fierce lobbying by rival Sony against the deal, the U.S. Federal Trade Commission is attempting to legally block the deal. says there is. expressed skepticism.
Here’s an update on Microsoft’s plans to acquire Activision Blizzard.
Google and Nvidia reportedly voiced concerns about the deal
according to bloombergGoogle and Nvidia both agreed with Sony by raising concerns with the FTC about the merger’s potential to crush competition, and bolstering the regulator’s claims, which it prepares to take to court in August.
Neither are Microsoft’s direct competitors in gaming as much as Sony, but there is some overlap between the two. Nvidia’s main business is manufacturing graphics cards, but it also offers streaming service GeForce Now, perhaps the closest competitor to Microsoft’s Cloud Gaming initiative. (GeForce Now doesn’t appear to be handling any major Activision Blizzard games right now.) Nvidia reportedly wasn’t directly opposed to the deal, but the need for open and equal access to Activision Blizzard’s games has been reinforced. emphasized.
Stadia, Google’s own streaming service, is about to shut down. However, the company has a strong interest in mobile gaming via its Google Play store and Android operating system, and has been the focus of mobile giant King (candy crush) As part of a deal with Activision Blizzard, Microsoft will become a bigger player in this space. Perhaps the complaint is just one tech giant trying to curb the influence of another.
Microsoft says it wants to bring a pro-union approach to Activision Blizzard
January 6th, The Verge reports, Microsoft placed an ad in the Washington Post highlighting its acceptance of a union co-signed by the Communications Workers Union of America. “We remain committed to creating the best workplace possible. Employees, shareholders and customers all benefit when both sides bring their voices to the bargaining table,” the memo read. increase. “We hope that sometime in 2023, Microsoft will bring Activision Blizzard, which it has proposed to acquire, to the same agreement and principle.”
This is certainly a pitch to the FTC that Microsoft can improve working conditions at Activision Blizzard. Activision Blizzard is resisting the move to unionize its employees after a horrific 2021 workplace culture scandal. This ad highlights the successful unionization of 300 Bethesda. His ZeniMax employee after Microsoft acquired the company said: On the contrary, we believe it is important to seek solutions that protect competition and consumers while fostering worker needs, economic growth, and innovation in America. “
Microsoft admits it was wrong to call the FTC “unconstitutional.”
While Microsoft has tried to smooth its way with skeptical, if not hostile, regulators, Microsoft has been the most provocative in its response to the FTC lawsuits that try to block the merger. retracted one of its allegations. According to Axioson January 5, Microsoft amended its filings to remove allegations that the FTC’s structure violates the US Constitution.
“The FTC has an important mission to protect competition and consumers, and we swiftly updated our response to omit language that constitutionally suggests otherwise,” said a Microsoft spokesperson. developer David Cuddy told Axios. “We initially considered all potential arguments internally and had to withdraw these defenses before filing. We appreciate feedback on these defenses and those who have expressed concerns We are working directly with them to clarify our position.” In other words, sorry, I know it was out of order.
FTC says it’s not in ‘substantial’ negotiations with Microsoft
On Tuesday, January 3, the first pretrial hearings were held in the FTC’s lawsuit to block the merger. at the time, FTC Attorney James Weingarten said: The commission approved settlement talks with Microsoft, but said there was “no substantive discussion at this time.”
This sounds like bad news for Microsoft, but the key word here is “substantial.” The two sides are undoubtedly in touch, and Microsoft is almost certain to offer a settlement. These days, tech giants are known for their collaborative approach with governments and regulators. Blizzard’s expiration date is his July 2023. The trial itself he will not start until August.
UK regulator says more time needed to investigate deal
On January 5, the UK’s Competition and Markets Authority (one of three regulators deemed powerful enough to block trading outright, along with the FTC and the European Commission) said: Said it would take longer Complete what is known as “Phase 2” of the detailed investigation of the transaction.
The CMA originally hoped to complete its deliberations by March 1, but has moved the deadline back to April 26. The CMA has said it has “concerns” about the deal, which so far appears to be heavily swayed by Sony’s lobbying efforts. but, in public consultationfound that the majority of responses were in favor of the deal (“contains abusive content (no other substantive content) or is blank, incomprehensible, and from non-UK consumers or English.”
Chile Approves Acquisition
December 29, 2022, Chilean National Economic Prosecutor Becomes the latest international regulator to approve a transactionThe company doesn’t believe the deal will significantly reduce competition, and believes it’s unlikely Microsoft will pull Call of Duty from other platforms, including PlayStation (although this concern is likely due to the deal’s was at the center of Sony’s opposition to
Here is a list of all countries that have so far approved Microsoft’s acquisition of Activision Blizzard:
- Chile
- Brazil
- Saudi Arabia
- Serbia
what happens next?
The next major deadline is the European Commission’s verdict, which is expected to be submitted by 23 March.
