FTC Abandons Legal Battle Against Microsoft’s $69 Billion Acquisition of Activision Blizzard: What It Means for Gamers and Industry

The U.S. Federal Trade Commission (FTC) recently decided not to block Microsoft’s $69 billion acquisition of Activision Blizzard, the company behind "Call of Duty." FTC Chairman Andrew Ferguson explained that pursuing this case wasn’t in the public’s best interest.

Ferguson is shifting the FTC’s focus toward actions aligned with new priorities, including an investigation into whether advertisers colluded to lower spending on social media platforms like X. This marks a notable change from policies under his predecessor, Lina Khan. For instance, the FTC has also dropped a case against PepsiCo over alleged price discrimination favoring Walmart.

Earlier this year, the FTC lost an appeal to halt the Microsoft-Activision deal. Despite this setback, the agency still had a chance to contest the acquisition in a trial set for July.

Microsoft President Brad Smith called the FTC’s choice to drop the case a triumph for gamers and for rational decision-making in Washington.

This acquisition is significant; it represents the largest purchase in the video game industry to date. The FTC had argued that the deal would strengthen Microsoft’s position against competitors in the gaming market, especially for its Xbox console and subscription services.

Interestingly, around 70% of Americans believe mergers like this one lead to less competition, according to a recent survey by Gallup. This sentiment highlights ongoing concerns about market dominance and consumer choice.

As the tech landscape continues to evolve, merging companies are under more scrutiny. Keeping an eye on how these acquisitions affect competition and innovation will be crucial for both consumers and regulators in the future.

For further details on this, you can read more from Reuters.

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