U.S. Federal Trade Commission Seeks to Appeal Ruling on Microsoft-Activision Blizzard Merger

U.S. Federal Trade Commission Seeks to Appeal Ruling on Microsoft-Activision Blizzard Merger

The United States Federal Trade Commission (FTC) has recently sought to appeal a ruling that allowed the merger between Microsoft and Activision Blizzard to go through. This merger, which was announced in September of 2020, is valued at a staggering $37 billion and will create one of the largest video game companies in the world.

The FTC had initially filed a lawsuit against the merger, arguing that it would reduce competition in the video game industry and lead to higher prices for consumers. However, a federal judge ruled in favor of the merger in February 2021, allowing it to go ahead.

The FTC has now appealed this decision, arguing that the merger would create a monopoly in the video game industry and lead to higher prices for consumers. The FTC also argued that the merger would reduce innovation in the industry, as Microsoft and Activision Blizzard would have less incentive to develop new games.

The appeal is currently pending before the U.S. Court of Appeals for the District of Columbia Circuit. The court is expected to hear arguments from both sides in the coming months.

If the FTC’s appeal is successful, it could mean that the merger between Microsoft and Activision Blizzard will be blocked. This could have a major impact on the video game industry, as it would mean that two of the biggest players in the industry would not be allowed to join forces.

It remains to be seen how this case will play out, but it is clear that the FTC is taking a strong stance against the merger. It will be interesting to see how the court rules on this case, as it could have major implications for the future of the video game industry.