Labor, consumer groups urge FTC to scrutinize Microsoft/Activision-Blizzard merger

Fifteen labor and consumer rights groups sent a letter to the Federal Trade Commission (FTC) on Tuesday, urging the agency to investigate Microsoft’s pending acquisition of top gaming company Activision-Blizzard.

The organizations, including the Communications Workers of America and the Center for Digital Democracy, said the merger poses anticompetitive concerns in the booming gaming industry.

“If the FTC clears this merger, Microsoft will become the third largest gaming company in the world,” the letter reads. “The gaming industry, as the commission is aware, has now outstripped revenues from the global film and US sports business combined. The proposed merger fits an alarming pattern of concentration in the gaming industry over the past several years.”

The FTC announced a month ago it was reviewing the merger, according to Reuters.

The groups say that Microsoft, a tech company with a market cap of $2 trillion, could raise subscription prices for its services or limit options if it acquires Activision-Blizzard, the studio behind extremely popular gaming titles such as “Call of Duty” and “World of Warcraft.”

Microsoft manufactures one of the leading gaming consoles, the Xbox, and has already acquired Mojang, the studio behind “Minecraft,” and Zenimax Media, which created “Fallout,” “Elder Scrolls,” “Doom,” and other popular titles.

Microsoft announced the $70 billion acquisition of Activision-Blizzard on Jan. 18. The company’s CEO, Bobby Kotick, said the deal will “help ensure our continued success in an increasingly competitive industry.” 

The Hill has reached out to Microsoft and the FTC for comment.

Activision-Blizzard has also come under the spotlight for allegedly promoting a “frat boy” work culture. Workers at the gaming company filed a lawsuit in September with the California Department of Fair Employment and Housing, alleging sexual harassment and discrimination in the workplace.

In Tuesday’s letter, the groups said Microsoft’s acquisition of Activision-Blizzard could make the situation worse by stifling unionization efforts at the gaming company.

“Now, as those workers seek to form a union to address their collective interests, the potential takeover by Microsoft threatens to further undermine workers’ rights and suppress wages,” the groups said. 

“The fact that none of Microsoft’s US-based employees belong to a union underscores Microsoft’s success in preventing its labor force from organizing to protect worker interest.”

–Updated on March 2 at 10:50 a.m.