The recent legal case involving Microsoft and Activision is just one of the many setbacks faced by the US antitrust watchdog, the Federal Trade Commission (FTC). The FTC has encountered difficulties in its efforts to regulate big tech companies, such as its unsuccessful attempt to block Meta Platforms Inc., the parent company of Facebook, from acquiring a virtual-reality startup.
The challenge of keeping large technology companies in check has become increasingly difficult, as the US Congress has yet to pass new antitrust laws.
Federal Trade Commission Chair Lina Khan has faced legal setbacks in her efforts to enforce her novel view of antitrust policy. Most recently, a federal judge in California rejected the FTC’s attempt to block Microsoft’s acquisition of Activision Blizzard.
This is just one of several legal setbacks for the antitrust watchdog, including an unsuccessful attempt to block Meta Platforms’ acquisition of a virtual-reality startup. These setbacks undermine Khan’s approach to reining in tech giants and challenging business monopolies that may have non-price-related negative effects on consumers.
The judge in the Activision case found the FTC’s arguments unpersuasive, stating that the deal would actually provide consumers with more access to Activision games. While the deal still faces opposition from UK regulators, the US court ruling has prompted them to consider proposals from Microsoft.
Khan’s appointment was meant to signal a crackdown on big tech, but without new antitrust statutes from Congress, her efforts may face ongoing challenges in court. Khan has a chance to improve her track record with an anticipated lawsuit against Amazon, where the dominant presence of the company in retail is more apparent.
However, Amazon is likely to defend itself using traditional measures of anti-competitive behavior and emphasizing consumer benefits and convenience.
