Rift at FTC Over Microsoft’s Activision Blizzard Buyout

Internal deliberations within the Federal Trade Commission (FTC) regarding Microsoft’s proposed $69 billion acquisition of Activision Blizzard have revealed a significant policy divide among the agency's commissioners. While FTC Chair Lina Khan has expressed concerns regarding the merger's potential impact on labor and market competition, reports indicate that at least one of the three Democratic commissioners may favor the deal. This potential shift in support could lead to a tie vote on the four-member panel, which would effectively allow the merger to proceed by default.

The potential for a split decision highlights the challenges facing the agency as it evaluates the high-profile acquisition. The panel currently consists of three Democrats and one Republican, Christine Wilson, who has already signaled her support for the transaction. If a Democratic commissioner breaks ranks, it could undermine the regulatory authority of the commission’s leadership. Insiders suggest that any approval from the dissenting commissioner would likely be contingent upon specific conditions or settlements, such as the ten-year commitment Microsoft has proposed to maintain the Call of Duty franchise on PlayStation platforms.

The situation remains fluid as the FTC weighs the possibility of filing a federal lawsuit to block the acquisition. This regulatory uncertainty occurs within a broader global context, as Microsoft faces varying levels of scrutiny from international jurisdictions, including the European Union and the United Kingdom. While some nations, such as Serbia, Saudi Arabia, and Brazil, have cleared the deal without opposition, the internal friction at the FTC underscores the complex legal and political hurdles Microsoft must navigate to finalize the purchase.