Game Over or Game On?: Regulatory Scrutiny of Microsoft ’s Activision Acquisition and the Future of Gaming and Antitrust

Jennifer HuddlestonIn January 2022, Microsoft announced plans to acquire video game giant Activision Blizzard, the maker of popular video games includingCall of Duty. Over the course of the year that followed, this proposed acquisition faced scrutiny and challenges from competition regulators in the United States, United Kingdom, and European Union.Just this week, theEuropean Commission held a hearing to air some of the concerns around this proposed acquisition. This is just the latest example of technology sector mergers or acquisitions facing challenges from competition regulators. But do attempts to block the acquisition accurately reflect the market experience of consumers? And what do these challenges reveal about current antitrust laws?As with other cases brought against technology companies, one of the key points of contention related to the acquisition is the appropriate market definition that determines who the competitors are or are not. For example, in its case to stop the merger, theFederal Trade Commission (FTC) contends​Microsoft’s acquisition of Activision’s video game library would allow it to leverage that library to limit competition in the video game console market, thereby securing its dominance. Ideally, a market definition should reflect the reality that consumers experience and a case should be able to show harm to consumers from the transaction being allowed. So what does the gaming market look like to the average consumer?Mos...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs