U.S. senators raise concerns over Activision Blizzard deal

By Otto Kratky April 1, 2022

Four U.S Senators have sent a letter to Lina Khan, the chairwoman of the Federal Trade Commission (FTC), expressing concerns that Activision Blizzard’s pending acquisition by Microsoft has “impeded unionization efforts and undermined workers’ calls for accountability.” The letter, sent by Sens. Elizabeth Warren, Bernie Sanders, Sheldon Whitehouse, and Cory Booker, asks the FTC to oppose the acquisition if it is found to “enhance monopsony power and worsen the negotiating position between workers and the parties to this deal.”

Prior to and throughout the process of being acquired by Microsoft for a total of $68.7 billion, which far outpaces any previous acquisition in the game industry, Activision Blizzard has found itself under the scrutiny of multiple government organizations. The company recently settled a lawsuit brought forth by the Equal Employment Opportunity Commission regarding claims of sexual harassment and gender-based discrimination in the workplace taht created an $18 million fund for claimants.

The California Department of Fair Employment and Housing, which first brought allegations of misconduct and discrimination at Activision Blizzard to light, is continuing its case against the company. This case, along with the financial woes it brought to Activision Blizzard, eventually led to Microsoft’s acquisition of the company.

Likewise, Activision has seen a surge in unionization efforts since Microsoft’s announcement that it intends to purchase the gaming giant. In January, 34 QA staffers at Activision’s Raven Software, the developer for the publisher’s hit battle royale title Call of Duty: Warzone, voted to form a union. Activision has since refused to voluntarily recognize that union and reorganized Raven Software’s QA department, spreading many of its members across multiple departments rather than keeping them in one cohesive unit.

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Otto Kratky is a freelance writer with many homes. You can find his work at Digital Trends, GameSpot, and Gamepur. If he's…

Gaming

Microsoft pledges to bring Xbox PC games to Nvidia GeForce Now

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Microsoft has announced a 10-year partnership with Nvidia aimed at bringing Xbox PC games to its cloud gaming service competitor Nvidia GeForce Now as part of its ongoing efforts to win over companies skeptical of its potebtial Activision Blizzard acquisition.
This means that players can use Nvidia GeForce Now to play the Steam, Epic Games Store, or Windows versions of titles like Halo Infinite, Redfall, and eventually, Call of Duty through the cloud on GeForce Now. Third-party publishers with games on the Windows Store can also now grant streaming rights to Nvidia. This announcement came during a European Commission hearing where Microsoft tried to convince regulators that its impending acquisition should bne allowed.
Microsoft has been under a lot of regulatory scrutiny even since it announced its intent to acquire Activision Blizzard in January 2022. It's trying to win over industry peers with deals like this one with Nvidia. This week, the Communications Workers of America voiced its approval of the deal, and Microsoft has signed a binding agreement to bring Call of Duty to Nintendo platforms as well. Previously, Nvidia had raised concerns about Microsoft's Activision Blizzard acquisition, but the press release announcing this agreement states that the deal "resolves Nvidia's concerns," and that Nvidia now gives "full support for regulatory approval of the acquisition."
Regulatory bodies in the U.S., U.K., and Europe are worried that Microsoft acquiring Activision Blizzard will hurt the game industry and sabotage Microsoft's competitors in both console and cloud gaming. Nvidia GeForce Now is seen as one of the biggest competitors to Xbox Game Pass Ultimate's cloud service offerings, which makes it surprising that it reached an agreement with Nvidia. However, this deal also demonstrates how Microsoft is willing to make concessions so that its acquisition of Activision Blizzard is approved.

Gaming

U.K. wants Call of Duty removed from Microsoft’s Activision acquisition

Call of Duty Modern Warfare 2.

Microsoft has hit a major roadblock in its attempt to acquire Activision Blizzard, as the UK's Competition and Markets Authority (CMA) has determined that the deal "could harm U.K. gamers." For the deal to go through, the CWA is suggesting some major concessions, like Activision Blizzard divesting in the Call of Duty or Activision segments of its business ahead of the acquisition.
A notice of possible remedies document asks Activision Blizzard to do one of the following three things if it doesn't want the acquisition to be potentially prohibited.

"Divestiture of the business associated with Call of Duty."
"Divestiture of the Activision segment of Activision Blizzard, Inc., which would include the business associated with Call of Duty."
"Divestiture of the Activision segment and the Blizzard segment of Activision Blizzard Inc., which would include the business associated with Call of Duty and World of Warcraft, among other titles."

Gaming

FTC files lawsuit to block Microsoft’s Activision Blizzard acquisition

Lilith appears in a Church in Diablo 4.

The Federal Trade Commission (FTC) will sue Microsoft to block its acquisition of Call of Duty and World of Warcraft publisher Activision Blizzard.
A 3-to-1 vote ultimately determined the FTC's decision to issue the lawsuit as the commission fears that the deal would give Microsoft an unfair advantage in the gaming industry and hurt innovation. FTC Bureau of Competition Director Holly Vedova explained the FTC's intent in a press release.
"Microsoft has already shown that it can and will withhold content from its gaming rivals," she said. "Today, we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets."
That press release also highlights the FTC's belief that Microsoft's acquisition of ZeniMax Media is problematic due to a track record of "using valuable gaming content to suppress competition from rival consoles." In addition, after the Activision Blizzard acquisition, Microsoft could potentially "harm competition by manipulating Activision’s pricing, degrading Activision’s game quality or player experience on rival consoles and gaming services, changing the terms and timing of access to Activision’s content, or withholding content from competitors entirely."
This $69 billion acquisition has dominated gaming industry headlines all year as Microsoft has been doing all it can to make the deal seem favorable to the industry. As recently as December 6, Head of Xbox Phil Spencer emphasized the potential positives of this acquisition, confirming plans to continue to bring Call of Duty to Nintendo platforms and Steam for 10 years if the Activision Blizzard merger is complete.
By filing this complaint, the FTC begins proceedings that will result in a hearing and trial before an administrative law judge to determine whether or not Microsoft will acquire Activision Blizzard.