US Regulator Appeals Microsoft-Activision Deal Despite Completion

The US Federal Trade Commission has filed an appeal to block Microsoft's acquisition of Activision Blizzard, valued at $68.7 billion, which was finalized in October. In a recent hearing before a three-judge panel at the Ninth Circuit US Court of Appeals, the FTC claimed that the initial ruling by district judge Jacqueline Scott Corley set an excessively high standard. According to Imad Abyad, the FTC's attorney, the commission only needed to show that Microsoft could potentially limit game availability on other platforms, rather than proving the deal's anticompetitive effects. Abyad cited Microsoft's history of making titles exclusive after acquiring Zenimax in 2020. He emphasized that granting a monopoly would not promote competition, even if it benefits a specific group of consumers. In response, Microsoft's representative, Rakesh Kilaru, argued that the initial ruling was based on clear factual findings and that the merger would have a positive impact. Kilaru also stated that the standard for evaluating the deal cannot be as low as the FTC suggests, requiring more substantial evidence than a minimal indication of potential issues. The deal was initially announced in January 2022 and was officially completed on October 13.