US Lawmakers Urge FTC to Dismiss Microsoft-Activision Case

A group of nearly two dozen US Congress members has penned a letter to the Federal Trade Commission, calling for the dismissal of its lawsuit challenging Microsoft's proposed acquisition of Activision Blizzard. The letter, signed by 22 Republican lawmakers, is addressed to FTC Chair Lina Khan and Commissioners Rebecca Slaughter and Alvaro Bedoya. It expresses concerns and urges the FTC to drop the case, redirecting its resources to support American consumer interests. The lawmakers argue that the FTC's primary concern - Microsoft potentially withholding Call of Duty and other Activision titles from rival platforms like Sony's PlayStation - has been alleviated by ten-year agreements with Sony and Nintendo. They also contend that making Call of Duty exclusive to Xbox would be economically irrational for Microsoft. The group cites a recent ruling by Judge Jacqueline Scott Corley, who found that the FTC failed to demonstrate the acquisition would substantially reduce competition in cloud gaming and multi-game subscription markets. The lawmakers criticize the FTC's recent court losses, claiming the Commission has deviated from established antitrust policies since 2021, embracing an approach that is anti-consumer, anti-innovation, and anti-American. Following the FTC's appeal against Judge Corley's ruling, which was denied by the Ninth Circuit Court of Appeals, Microsoft and Activision are now free to complete the acquisition in the US, although they are reportedly negotiating a contract extension to address remaining concerns from the UK's antitrust regulator.