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FTC Fails to Block Microsoft’s Takeover of Activision: US Court

Swathi Kashettar

The US court's decision to allow Microsoft's acquisition of Activision will have a impact on the gaming industry

The Federal Trade Commission (FTC) unsuccessfully sought to block the $69 billion merger agreement between Microsoft and Activision Blizzard by a US court. Microsoft gained a lot from the decision, which allowed them to grow into one of the biggest gaming firms in the world. In February 2022, the FTC brought legal action, asserting that the transaction would substantially lessen competition in the gaming industry. The FTC said that the agreement would give Microsoft excessive control and encourage anti-competitive behavior. The US court, in contrast, rejected the FTC's assertions, claiming that there was insufficient proof that the transaction would harm competition.

The most significant acquisition in the history of the video game business is the Microsoft-Activision agreement. A gaming behemoth with a portfolio of some of the most well-known video game properties, such as Candy Crush, World of Warcraft, and Call of Duty, will be born if the transaction goes around.

Gamers and industry followers have reacted differently to the deal. Some people have voiced concern that the agreement would give Microsoft an excessive amount of influence in the market, while others have suggested that it would be a good thing for the sector as a whole.

After the Federal Trade Commission failed to halt the merger, a US court approved Microsoft's acquisition of Activision Blizzard. Thanks to the acquisition, Microsoft will be able to improve its ability to compete with other key companies in the gaming business. The court's ruling is expected to shake up the gaming sector and might have a significant impact on how the market is competitive.

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