FTC Chair Lina Khan's Mission: Safeguarding the Cloud Gaming Market through Blocking Microsoft-Activision Merger

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Lina Khan

 

FTC Chair Lina Khan has reiterated her commitment to protecting the future by implementing measures that create obstacles in the present. In a surprising interview with CNBC, Khan briefly discussed the Microsoft-Activision acquisition. She stated:
 

This matter is currently under active proceedings, so there are limitations to what I can disclose. However, the FTC filed a separate lawsuit to block this deal in early December. The Complaint highlights various concerns the Commission has, particularly in the console market, as well as the expanding and evolving cloud and subscription markets.
 

The Complaint focuses on multiple markets, including those that are still experiencing rapid growth and development.
 

We have witnessed time and again how these emerging markets require enforcers to prioritize safeguarding competition and innovation, ensuring incumbents do not stifle competition and innovation.

 

Considering the FTC's decision to exclude Nintendo from what it considers the "Big 3" in the gaming console industry, it may not be surprising to see a disconnect between the FTC and Miss Khan regarding the gaming industry.

Microsoft has faced challenges entering markets like Japan due to the strong dominance of Sony and Nintendo, primarily because of their exclusive deals in the Anime Genre Games.

Microsoft made headlines with its announcement of the mega-merger last year, shaking up the gaming industry. Since then, it has been striving to gain approval in various global markets.

Last month, Microsoft faced a major setback when the United Kingdom's Competition and Markets Authority (CMA) blocked the merger, citing concerns about competition in the cloud gaming sector.

The United States' FTC, along with Miss Khan, appears to be aligning with a similar viewpoint. It seems that Microsoft may face a lengthy path to success, as it is encountering challenges even in its home market.


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