Federal Trade Commission Sues Microsoft Over Activision Blizzard Purchase

Microsoft announced a year ago that it intends to acquire Activision Blizzard. Of course, this led to antitrust investigations, which exist in the USA and the EU, among others. But the whole thing is probably a political issue that is anything but clean.

The Redmond group wants to take over Activision Blizzard for around 69 billion dollars, that’s the simple starting point for this planned deal. But there is nothing easy about the competition investigations, which is due on the one hand to the enormous takeover sum and on the other hand to the political attitudes towards Microsoft. Because even if the group has changed its business and appearance significantly in recent years, Microsoft is still considered a symbol of a monopolist.

As you can hear, the current head of the Federal Trade Commission (FTC), Lina Khan, also wants to use the current Microsoft case to distinguish herself and would like to make an example of the Activision Blizzard takeover against “Big Tech”. And the US competition authority also works with rather dubious methods, Bloomberg reports.

USA wanted to prevent Microsoft talk with the EU

Because the business portal writes that the FTC has timed its lawsuit in such a way that the European competition authority can be manipulated. Specifically, the FTC blockade of the deal was pushed to December 8 to prevent talks between the EU and Microsoft. Previously, the US authorities are said to have received information from their EU colleagues that they intend to talk to Microsoft about possible remedial measures.

According to insiders, the aim of this action was to send the EU a “clear message” that the US authorities do not want an agreement between the EU and Microsoft. By acting quickly, the FTC was able, or intended, “to get ahead of the Europeans in order to influence the narrative,” said Barry Nigro, a competition law attorney not involved in the case.

The FTC did not want to comment on this procedure, and the EU competition authority has not yet answered a request. The Redmond-based group referred to earlier statements by the Microsoft President, who said: “While we are confident in our cause, we continue to work with regulators to find creative solutions that protect competition, consumers, and workers in the technology sector will protect.”