<span class=caption-credit> Activision</span>
Microsoft-Activision Deal Upheld: Appeals Court Rejects FTC’s Antitrust Claims
The Ninth Circuit US Court of Appeals has once again upheld Microsoft’s $68.7 billion acquisition of Activision Blizzard, rejecting the Federal Trade Commission’s antitrust concerns. The court found insufficient evidence to support claims that the merger would harm competition in the gaming industry.
Court’s Decision and Key Findings
In a significant victory for Microsoft, the appeals court has affirmed a lower court’s ruling that the tech giant’s acquisition of Activision Blizzard does not violate antitrust laws. The court specifically addressed the FTC’s primary concerns about platform exclusivity and market competition, finding them insufficient to block the merger.
Key Aspects of the Ruling
- The FTC failed to prove Microsoft would restrict access to popular titles like Call of Duty
- Court found no substantial evidence of harm to gaming subscription services
- Claims about impact on cloud streaming market were deemed insufficient
- Platform exclusivity concerns were dismissed as industry standard practice
Platform Exclusivity and Competition
Judge Daniel P. Collins, in his opinion, noted that platform exclusivity is a common industry practice, stating that “all major manufacturers have engaged in this practice.” This observation was particularly relevant given Microsoft’s recent moves to make previously exclusive titles available across different platforms.
Microsoft’s recent strategy of expanding game availability across platforms, including bringing titles to PlayStation 5, has helped demonstrate their commitment to maintaining broad game accessibility post-merger.
Merger Timeline and Challenges
Industry Implications
The court’s decision has significant implications for the gaming industry and future tech acquisitions. Microsoft’s successful defense of the merger, particularly their strategy of maintaining multi-platform availability for major titles, may set precedents for future industry consolidation.
Microsoft’s Gaming Strategy
Microsoft’s approach to the acquisition has demonstrated a commitment to maintaining broad game accessibility. Their strategy includes:
- Expanding availability of previously exclusive titles to other platforms
- Maintaining existing game distribution channels
- Supporting cross-platform gaming experiences
- Investing in cloud gaming infrastructure
Looking Forward
With this latest court victory, Microsoft can fully focus on integrating Activision Blizzard into its gaming division. The ruling not only validates Microsoft’s acquisition strategy but also provides valuable insights into how future gaming industry consolidation might be evaluated from an antitrust perspective.
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