House Republicans urge Lina Khan’s FTC to drop fight against Microsoft-Activision deal
Republican Lawmakers Urge FTC to Drop Opposition to Microsoft’s Acquisition of Activision Blizzard
A group of twenty-two Republican lawmakers is calling upon the Federal Trade Commission (FTC) to abandon its fight against Microsoft’s proposed $75 billion acquisition of video game maker Activision Blizzard. In a letter addressed to FTC Chair Lina Khan and two commissioners, the lawmakers argue that the deal is a “pro-competitive transaction” and highlight their concerns regarding the agency’s rejection of sound antitrust policy.
Last week, a US District Court judge ruled that the Microsoft-Activision deal was legal, and an appeals court denied an emergency motion to halt the transaction. In response to this development, the lawmakers behind the letter stated, “We write to express our concerns, and to urge you to drop this matter.” They contend that the addition of Activision’s portfolio will enable Microsoft’s Xbox business to reach a wider consumer base, including those who prefer mobile gaming.
The acquisition of Activision would mark Microsoft’s largest deal ever and the largest in the history of the video game industry. Despite facing criticism from US and British antitrust enforcers, Microsoft is reportedly close to finalizing the deal.
Among the signatories of the letter are James Comer, chair of the House Committee on Oversight and Accountability, and Jim Jordan, chair of the House Judiciary Committee, which recently interrogated FTC Chair Khan over the agency’s court battles related to multi-billion-dollar mergers.
The FTC confirmed the receipt of the letter but declined to comment. As of now, Microsoft has not responded to requests for comment.
FAQs:
Q: What is the letter from Republican lawmakers urging the FTC to do?
A: The letter urges the Federal Trade Commission to drop its opposition to Microsoft’s acquisition of video game maker Activision Blizzard.
Q: Why do the lawmakers argue that the deal is a “pro-competitive transaction”?
A: They believe that the addition of Activision’s portfolio will enable Microsoft’s Xbox business to reach a wider consumer base, including mobile gamers.
Q: What is the current status of the Microsoft-Activision deal?
A: Last week, a US District Court judge ruled the deal to be legal, and an appeals court denied an emergency motion to pause the transaction. Microsoft is reportedly close to finalizing the acquisition.
Q: Who are some of the lawmakers who signed the letter?
A: James Comer,
House Republicans Call on Lina Khan’s FTC to Abandon Opposition to Microsoft-Activision Deal
Twenty-two Republican lawmakers have called on the Federal Trade Commission (FTC) to drop their opposition to Microsoft’s acquisition of video game maker Activision Blizzard. In a letter sent to FTC Chair Lina Khan and two commissioners, the lawmakers, all members of the Republican-controlled House, argued that the proposed deal is a “pro-competitive transaction.” The FTC, responsible for enforcing antitrust law, is currently weighing its options after a US District Court judge ruled last week that the deal was legal and an appeals court declined an emergency motion to halt the transaction.
“We write to express our concerns, and to urge you to drop this matter,” stated the lawmakers in response to the FTC’s continued pursuit of the case. Microsoft, the creator of the Xbox video game console, has been vigorously defending the $75 billion deal for months. While the deal has faced criticism from US and British antitrust authorities, it is now on the brink of completion. If successfully finalized, it would mark Microsoft’s largest-ever acquisition and would be the biggest in the history of the video game industry.
Leading figures on the letter include James Comer, chair of the House Committee on Oversight and Accountability, and Jim Jordan, chair of the House Judiciary Committee. The latter committee recently questioned FTC Chair Lina Khan over the agency’s unsuccessful court battles concerning multi-billion-dollar mergers. The FTC has acknowledged receiving the letter but has refrained from commenting further, while Microsoft has yet to respond to requests for comment. The lawmakers argue that the FTC’s pursuit of a preliminary injunction against the acquisition is a prime example of its failure to adhere to sound antitrust policy. They maintain that Microsoft’s Xbox business has been a minor competitor in the gaming industry for two decades and that the addition of Activision’s portfolio would allow Xbox to offer their games to a broader range of consumers, particularly those who prefer playing on mobile devices.