December 27, 2024

FTC’s bid to block Microsoft’s Activision buyout has no end in sight

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FTC’s bid to block Microsoft’s Activision buyout has no end in sight

 

Those hoping for Microsoft, Activision, and the Federal Trade Commission (FTC) to sit around a table to settle their differences are out of luck, it seems.

Following the news last month that the FTC intended to block Microsoft’s buyout of Activision for $69 billion it had been hoped that a trip to court could be avoided. But a new report by Reuters says that there have been no “substantive” settlement discussions between the parties.

The FTC told a judge in December that it wanted to call a halt to the buyout over concerns that Microsoft’s acquisition of Blizzard would mean that Sony and Nintendo would be left at a disadvantage, with the Xbox maker able to turn huge gaming franchises into exclusives. With Call of Duty at the core of the problem, Microsoft promised to sign agreements that would ensure that Call of Duty remained available on other platforms for a decade. The FTC hasn’t budged.

Now, with FTC attorney James Weingarten telling a pretrial hearing that discussions have not been forthcoming it looks increasingly likely that the matter will go to court. Michael Chappell, the FTC administrative law judge, looks set to rule on the buyout following hearings that are set for August.

The FTC isn’t Microsoft’s only problem, however. Even if a deal is allowed to go through in the United States, a European Union decision on the same matter is expected to be confirmed in March.