Last month, regulators in EU countries sat idly by, and this month's acquisition of Activision Blizzard by Microsoft revealed a new threat.
On Monday, June 12, Eastern time, news media quoted insiders as reporting that the Federal Trade Commission (FTC), the highest antitrust regulator in the United States, will apply for an injunction for the court to find a blockbuster deal that blocks Microsoft's nearly $69 billion acquisition of Activision Blizzard.
If the information is confirmed, it will be another attempt by the FTC to block Microsoft's largest acquisition in China's history, in the history of electronic device games. In December last year, the FTC announced a lawsuit against Microsoft Inc., bringing antitrust lawsuits against Microsoft's acquisition of Activision Blizzard, the world's leading electronic device and gaming real estate company.
The news media emphasized that the FTC's lawsuit last year chose the traditional administrative procedure law, and the case will be submitted to the FTC's internal chief criminal justice (ALJ), and the ALJ will make a preliminary ruling similar to the operation process of the trial, which is likely to be verified by the FTC as a whole federation and carried out a resolution. Microsoft will also appeal to federal government court from then on. If it files for an injunction, the FTC can directly block Microsoft from making acquisitions before the deal deadline of July 18. The case will be filed with ALJ in August.
Microsoft has since told the media that it would warmly welcome the ban, because it would make it more effective to take the case to the presiding judge of the federal government court.
After the above was exposed, this Monday's US stock market, the opening of the Microsoft stock price that had turned down to save the gains, did not return to the decline, the midday rise or expanded, up more than 0.4% in the day, there is hope to continue the third trading hours to close up, once again get rid of the bottom of the market last Wednesday since May 24.
When the FTC decided to sue Microsoft last year, it stressed that Activision Blizzard is currently a variety of device supply games, regardless of the device manufacturer, and once Microsoft is allowed to acquire it, such a layout is likely to change.
The FTC estimates that Microsoft will manipulate the licensing of Activision Blizzard's popular games, thereby not only having a way but also a motive to harm market competition and thereby harm customers, because Microsoft can control the pricing of Blizzard products, reduce the quality of Blizzard games in enemy consoles, or the gamer experience, change the terms and timing of Blizzard games, and prevent competitors from obtaining Blizzard content.
After the FTC action, European regulators also have a posture this year. At the end of April, the U.S. Business Competition Market Oversight Authority (CMA), the largest regulator in the United States, issued a statement saying that boycotting Microsoft's acquisition of Activision Blizzard hurt competition in the cloud gaming market because the transfer hurt competition in the cloud gaming market, noting that even if Microsoft chose to explicitly put out these so-called precautions, including selling Call of Duty and allowing competitors to give games on software, it would be difficult to deal with the problem.
In mid-May, EU regulators approved Microsoft's proposed acquisition. The European Commission said Microsoft has brought precautions to the nascent cloud gaming industry to prevent regulators' antitrust concerns. The precautionary measure is that users can stream their chosen Activision Blizzard games across all cloud network video platforms.
Shortly after the EU countries announced their approval for acquisitions, the CMA made it clear that the EU countries' approval was incorrect, and the US level stood by its own determination. Sarah Cardell, head of the CMA, said the EU approval would allow Microsoft to set terms and conditions for the industry for the next decade. While we recognize and value the European Commission's right to adopt a different opinion, the CMA stands by its own determination.
It is worth mentioning that, like the length of the FTC lawsuit, Microsoft is expected to appeal CME's ruling blocking its acquisition this summer.
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