US FTC sets date for internal arguments on Microsoft deal to buy Activision

WASHINGTON (Reuters) – The U.S. Federal Trade Commission (FTC) announced on Wednesday that its internal judge has been assigned a date to hear its arguments against Microsoft’s proposed acquisition of games maker Activision Blizzard.

According to the announcement, the hearing will take place 20 days after the appeals court makes its ruling on whether the deal can proceed. The FTC had previously contested the acquisition in district court but was unsuccessful, prompting an appeal.

This development follows the ongoing scrutiny surrounding Microsoft’s efforts to acquire Activision Blizzard, one of the world’s largest video game companies. The proposed deal, worth roughly $68 billion, has drawn attention from regulatory bodies concerned about potential anti-competitive effects within the gaming industry.

If the deal were to proceed, Microsoft would gain control over popular video game franchises such as Call of Duty, Candy Crush, and World of Warcraft. The acquisition would significantly bolster Microsoft’s presence in the gaming market, allowing the tech giant to directly compete with other industry leaders such as Sony and Nintendo.

The FTC’s arguments against the acquisition are expected to focus on the potential negative impacts it could have on competition and consumer choice. Regulators are concerned that Microsoft’s increased market power could result in higher prices, reduced innovation, and limited options for gamers.

In response, Microsoft has defended the proposed acquisition, highlighting the potential benefits that it could bring to the gaming industry. The company believes that the deal would facilitate collaboration and innovation, leading to the development of new and exciting gaming experiences for consumers.

The outcome of both the appeals court ruling and the FTC hearing will have significant implications for both Microsoft and the gaming industry as a whole. Should the deal be given the green light, it would reshape the landscape of the gaming market and potentially pave the way for further consolidation within the industry.

It remains to be seen how the appeals court and the FTC will ultimately decide on the fate of the Microsoft-Activision Blizzard deal. Until then, both parties await the upcoming rulings with anticipation as the gaming community and industry stakeholders closely monitor the situation.

Reporting by Diane Bartz; Editing by David Holmes