FTC still seeks to block Activision Blizzard deal even after its completion

Although Microsoft was finally able to complete its acquisition of Activision Blizzard King in October, its battle with the American FTC over the issue is anything but finished.

The two parties met again in a federal appeals court on Wednesday, as the FTC launches a renewed attempt to block the deal in the U.S. Back in July, the FTC lost its preliminary injunction to prevent the merger from going ahead.

The injunction was denied by judge Jacqueline Scott Corley, who remarked that the FTC had failed to prove its claims that Microsoft would withhold Activision Blizzard games like Call of Duty from competing platforms and thereby harm competition in the market.

Reportedly the FTC is still perusing this line of argument in opposition to the $68 billion merger. Representing the FTC in Wednesday’s hearing, attorney Imad Abyad presented in his argument Microsoft’s 2019 acquisition of Bethesda parent Zenimax, noting that since that acquisition Bethesda games have remained exclusive to the Xbox ecosystem. Abyad asserted that this is a clear precedent, suggesting that the same would happen with ABK franchises going forward.

Microsoft has made multiple deals ensuring that Call of Duty and other ABK titles would remain on competing platforms for years to come. Attorney for Microsoft Rakesh Kilaru said,

“It is not a violation of the antitrust laws to give consumers something new, that’s beneficial, unless they present some evidence of it, which they didn’t do.”

It’s unlikely that the FTC could still derail the merger at this point. But rather, it could impose penalties upon Microsoft for antitrust violations if its case ultimately proves successful.