FOR IMMEDIATE RELEASE: Decemer 8, 2022

CONTACT: Ashley Woolheater, woolheater@openmarketsinstitute.org 

WASHINGTON- Open Markets Institute Legal Director Sandeep Vaheesan released the following statement with regard to the Federal Trade Commission’s lawsuit to block Microsoft’s acquisition of major video game developer Activision Blizzard, Inc.: 

“We laud the FTC for moving to stop Microsoft's acquisition of Activision Blizzard. Microsoft has a major position in the video game console market, while Activision produces popular video games such as Call of Duty, World of Warcraft, Diablo, and Overwatch. If Microsoft acquired Activision, it could use Activision's valuable portfolio of games as a competitive weapon, withholding titles from rival consoles or offering lower quality versions of them, to give its own Xbox and cloud-gaming service a leg-up.  

“The FTC recognized this threat of unfair competition and made the right choice, once again showing it takes vertical mergers seriously. If giants like Microsoft want to expand, they should invest in their own capacity and hire more workers, instead of snapping up firms in adjacent markets. We hope the court sees the merits in the FTC's case and stops this harmful consolidation.” 

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