The Activision deal would be Microsoft’s largest ever acquisition and would make it the third-biggest gaming company in terms of revenues, behind China’s Tencent and Japan’s Sony.
The action is one of the biggest tests yet for FTC chair Lina Khan, who has vowed to crack down on Big Tech’s market power. She is among the progressive antitrust officials appointed by president Joe Biden in a bid to tackle anticompetitive conduct in corporate America. “With control over Activision’s blockbuster franchises, Microsoft would have both the means and motive to harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely, resulting in harm to consumers,” the FTC said in its release.
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