Activision Blizzard CEO Criticizes ‘Dogmatic’ CMA Over Microsoft Merger Ruling
Activision Blizzard CEO Bobby Kotick responds to the UK regulator’s attempt to block the Call of Duty company’s sale to Microsoft for $68.7 billion. In an interview with CNBC, Kotick made a number of claims, one of which was in reference to a supposed meeting between the CMA and the FTC. Kotick said he heard about a meeting between the head of the CMA and Lina Khan, the chair of the Federal Trade Commission in the US. The FTC is suing Microsoft to try to stop the sale. Some believe the FTC and CMA are working together.
Kotick alleged that the CMA is being used as a tool by the FTC to create outcomes that aren’t how they’re supposed to operate. He said that the regulators who have opposed the sale are “taking dogmatic positions” and are not doing their job and serving their mission.
Kotick also cited ByteDance and Tencent as the “best companies in their industries in the world,” and said that consolidation is a way for companies like Activision Blizzard to compete better. He emphasized that it’s imperative that the sale be allowed to go through so American companies can better compete on a global scale.
Kotick’s statement is significant considering he’s no stranger to controversy, with calls for him to resign amid a series of allegations of workplace misconduct. In June 2022, the company released the results of its own internal investigation via its investor site. While the report did acknowledge individual instances of harassment, it claimed there was “no evidence” that senior executives ignored harassment or concealed information from the Board.
It’s essential to note that there’s no evidence of collusion between the FTC and CMA in this case. An FTC source told Reuters that Khan and the CMA did in fact meet last week but did not discuss the case. FTC guidelines state that “federal antitrust work often involves cooperating with international authorities around the world to promote sound competition policy approaches.”
The controversy surrounding the potential sale of Activision Blizzard to Microsoft is expected to continue, with the outcome unclear. However, it’s crucial to keep in mind that the decision ultimately lies with regulators and their independent judgments on whether the merger is anticompetitive.
