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FTC not in "substantive" negotiations with Microsoft at this time

The battle for Activision Blizzard continues.

While the United States government's Federal Trade Commission (hereon referred to as the FTC) has agreed for staff to engage in settlement negotiations with Microsoft regarding its ongoing efforts to purchase Activision Blizzard, "there are no substantive discussions" between the two parties being conducted "at this time."

That's coming from FTC lawyer James Weingarten, who took part in a pretrial hearing on Tuesday to discuss Microsoft's proposed acquisition of Activision Blizzard for a record-breaking $69bn.

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Back in December, the FTC revealed its intention to block Microsoft's acquisition of Activision Blizzard, claiming should the deal be allowed to proceed, it would enable the company to suppress its fellow games industry competition.

"Microsoft has already shown that it can and will withhold content from its gaming rivals," the FTC's director of bureau competition Holly Vedova stated at the time, while also referring back to Microsoft's previous acquisition of ZeniMax.

Here, the FTC addressed Microsoft's past decision to make games from its subsidiaries - namely Bethesda's Starfield and Redfall - exclusive to Microsoft devices, despite previously assuring European regulators it had no incentive to withhold games from rival consoles.

"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," Vedova's statement continued.

Microsoft, however, has rebutted the FTC's claims that this acquisition would be anti-competitive. In fact, in its response to the lawsuit, the platform holder called this move by the FTC unconstitutional, stating it specifically violated the Fifth Amendment right to due process.

So, it is still a case of a waiting game to see if both parties can come to some sort of an agreement before the lawsuit goes to court. According to Weingarten, however, the agency has no plans "at this time" for that to happen.

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Victoria Kennedy avatar

Victoria Kennedy

News Reporter

Victoria developed a deep love for video games since watching her brothers barrel their way through Goldeneye 007. She will unashamedly spout forth all sorts of niche Zelda lore to anyone who will listen (and even at times to those who won’t), and makes the best pancakes you have ever seen.

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