Microsoft deal for Activision Blizzard to be reviewed by FTC in US

The investigation will focus on the combination of Activision's gaming portfolio with Microsoft's consoles and hardware systems. PHOTO: REUTERS

NEW YORK (BLOOMBERG) - The United States anti-trust review of Microsoft's proposed US$69 billion (S$93.2 billion) acquisition of Activision Blizzard will be handled by the Federal Trade Commission (FTC), according to a person familiar with the matter, putting the deal in the hands of an agency that has vowed more aggressive policing of deals.

The FTC will oversee the investigation into whether the takeover will harm competition, instead of the Justice Department, said the person, who was not authorised to speak publicly about the review. The two agencies share responsibility for anti-trust reviews of mergers and often reach agreements about which one will investigate a deal.

FTC chair Lina Khan has long advocated for a more forceful approach to reviewing deals, particularly by the biggest technology companies, which she says are able to leverage their dominance in one line of business to gain power in other markets. Under her leadership, the agency has sued to block two major takeovers - Nvidia's proposed purchase of Arm and Lockheed Martin's deal to buy of Aerojet Rocketdyne Holdings.

Microsoft declined to comment about the review. The FTC did not respond to a message seeking comment.

The Activision investigation will focus on the combination of Activision's gaming portfolio with Microsoft's consoles and hardware systems. Regulators are likely to look closely at how Microsoft's ownership of Activision could harm rivals by limiting their access to the company's biggest games.

Microsoft's last significant takeover, a US$17 billion deal to buy transcription software maker Nuance Communications, was approved last summer by US and European Union officials. The United Kingdom's Competition and Markets Authority is still reviewing the transaction.

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