The US Federal Trade Commission (FTC) remains vigilant in its pursuit to challenge Microsoft’s now-completed $69 billion acquisition of Activision, while also keeping a watchful eye on the tech giant’s newfound collaboration with Ubisoft, reported Reuters.
The high-stakes deal between Microsoft and Activision closed on Friday, following approval from British regulators. However, this approval came with a condition that raised eyebrows: the companies were required to divest streaming rights for Activision’s games to Ubisoft Entertainment, addressing competition concerns in the UK, as reported by Reuters.
Back in the United States, the FTC has been fiercely opposing the acquisition and has an upcoming hearing scheduled before an appeals court on December 6. Despite the deal’s closure, the FTC reiterated its steadfast focus on the appeal, firmly believing that the merger poses a substantial threat to competition.
In response to these developments, FTC spokeswoman Victoria Graham stated, “Microsoft and Activision’s new agreement with Ubisoft presents a whole new facet to the merger that will affect American consumers, which the FTC will assess as part of its ongoing administrative proceeding. The FTC continues to believe this deal is a threat to competition.”
The gaming industry and the tech world at large remain on edge as the FTC’s scrutiny intensifies, creating ripples of uncertainty around one of the most significant mergers in recent history. Stay tuned for further updates on this unfolding saga.