TPA Slams FTC’s Latest Move Against Microsoft

For Immediate Release                                          Contact: Abigail Graham: (202) 417-7235

June 12, 2023                                                              

WASHINGTON, D.C. – Today, according to reports by CNBC, the Federal Trade Commission (FTC) is looking to file an injunction to block Microsoft’s acquisition of Activision Blizzard. The injunction would cause the deal to fall apart before the quickly approaching deadline on July 18^th, 2023.

In response, TPA Executive Director Patrick Hedger, provided the following comment:

“The FTC’s legal theory of the case against Microsoft is severely flawed. Microsoft and Activision Blizzard are the fourth and sixth largest game publishers globally. Combining the two would bring them right behind top competitors, Sony and Tencent. This is hardly a monopolistic move, but rather one that will develop and bolster the already rampant competition in the gaming space.

“Microsoft has also already promised to allow competitors access to popular Activision Blizzard titles like the Call of Duty franchise for several years. Yet, the FTC’s case rests on the premise that Microsoft will deny such access. This lawsuit represents the FTC’s flawed approach to antitrust, reflexively opposing any and all mergers and acquisitions regardless of the facts of the case and the potential benefits to consumers. This is another example of the FTC pursing cases based on political animus rather than protecting the consumer welfare standard.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.