The US Federal Trade Commission (FTC) will reportedly be taking the reins on reviewing Microsoft’s intended acquisition of Activision Blizzard – amid a more aggressive stance from the government agency on Big Tech mergers.
Bloomberg reports that a source pointed to the FTC taking the lead role in investigating the proposed takeover – a job it handles alongside the Justice Department. The role of the review is to determine whether the near-$70 billion deal could harm consumers, rivals, and partners.
On the same day as Microsoft’s deal was announced, the Justice Department and FTC announced plans to rewrite merger guidelines, warning that US industries had become increasingly concentrated. FTC chair Lina Khan said that such concentration could lead to price rises and lower wages.
The Wall Street Journal has previously reported that the FTC is particularly concerned with Big Tech companies like Microsoft, and that Khan has been reframing the argument against major mergers not just by its traditional effect on consumers and rivals, but to partner companies – for instance those who are effectively forced to sell through the Apple Store, or Amazon’s digital storefront.
The FTC has recently sued to block two huge mergers: Nvidia’s purchase of Arm, and Lockheed Martin’s takeover of rocket engine manufacturer Aerojet Rocketdyne Holdings.
Whether the FTC has a similar case to be made regarding Microsoft and Activision Blizzard remains to be seen – and a legal expert tells IGN the deal is unlikely to break current antitrust laws – but it seems clear that the deal will be receiving more scrutiny than Microsoft’s acquisition of ZeniMax Media.
Joe Skrebels is IGN’s Executive Editor of News. Follow him on Twitter. Have a tip for us? Want to discuss a possible story? Please send an email to newstips@ign.com.