FTC suspends its challenge of Microsoft’s acquisition of Activision

The US Federal Trade Commission (FTC) has elected to suspend its administrative challenge aiming to stop Microsoft from acquiring Activision Blizzard, in what would be the most expensive merger in video game history.

On December 8, 2022, the FTC disclosed its intention to prevent the progress of the acquisition in a lawsuit on the basis that “Microsoft has already shown that it can and will withhold content from its gaming rivals.”

However, the United States District Court for the Northern District of California denied the FTC’s request for a preliminary injunction that would have allowed the FTC’s in-house court to investigate the impacts of competition on the consumer.

“The Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition,” said Judge Jacqueline Scott Corley. “To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content.”

As a result, the case has been suspended and will no longer be presented to its in-house administrative judge next month (via The Verge). However, that might mean that the FTC seizes the chance to re-file the challenge as Microsoft and Activision Blizzard have extended the deadline for the acquisition to be secured.

Buoyed by the good news, Microsoft and Activision Blizzard is now focused on negotiations with the Competition and Markets Authority (CMA) in the United Kingdom.

“We’re optimistic about getting this done, and excited about bringing more games to more players everywhere,” said Phil Spencer, CEO of Microsoft Gaming. Conversely, the CMA said that Microsoft’s evidence was “not effective to remedy [its] concerns” over a potentially irregular competitive landscape.

In other gaming news, the second trailer for the upcoming Gran Turismo movie showed more of the real story of professional racing driver Jann Mardenborough. Mardenborough is the youngest winner of the GT Academy, where 90,000 gamers tried out for a chance to realise their racing ambitions.