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US filed Microsoft-Activision suit to head off EU settlement

Bloomberg
Bloomberg • 4 min read
US filed Microsoft-Activision suit to head off EU settlement
The FTC filed a complaint challenging the merger on Dec 8, hours after a call between US and EU officials about their respective probes. Photo: Bloomberg
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The US Federal Trade Commission filed its lawsuit to block Microsoft Corp.’s US$69 billion ($90.76 billion) takeover of gaming company Activision Blizzard Inc. in December partly to get ahead of its European counterparts and dissuade them from accepting a settlement allowing the deal, according to people familiar with the investigations.

The FTC filed a complaint challenging the merger on Dec 8, hours after a call between US and EU officials about their respective probes, said one of the people, who asked not to be identified because the discussions were confidential. The EU officials indicated on the call they intended to begin talks with Microsoft about potential remedies, the person said.

That prompted the FTC to file its case the same day to send a strong signal to EU Competition Commissioner Margrethe Vestager and her staff, the people said, even though technically the commission wouldn’t entertain remedy proposals from the companies until later in the process.

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