"They're protecting Sony" FTC gets called out for attempting to block Microsoft's acquisition of Activision

It is no secret that the U.S. Federal Trade Commission (FTC) is one of the main opponents to Microsoft's purchase of Activision Blizzard. The agency is going through a turbulent time, so its chairwoman Lina Khan recently attended a hearing with U.S. authorities.

To her surprise, Diana Harshbarger, a member of the U.S. House of Representatives, questioned her directly about the FTC's support for Sony and the obstacles it is putting in Microsoft's way to complete the acquisition.

FTC singled out for supporting Sony and blocking Activision Blizzard buyout

A number of U.S. politicians take a negative view of Sony's exclusivity practices and everything that is happening with the purchase of Activision Blizzard. In this context, Harshbarger questioned Khan about the FTC's stance.

From Harshbarger's perspective, the agency is protecting Sony when in reality they should not be taking their side since they have the dominant position in the industry. Thus, he singled out the FTC for shielding the company that has been the main opponent of the Activision Blizzard purchase.

Harshbarger pointed out that competition law does not protect the dominant player in an industry, so he does not understand the agency's position. To this, Khan assured that the FTC listens to those involved in the market, including large companies.

"This case has also been voted out and is in administrative proceedings, so I'll let the complaint speak for itself," Khan said. "I will say as a general matter, we always really benefit from hearing market participants across the board, including big players. But at the end of the day, we always make our own independent judgments based on the law and the facts."

The agency has not yet given its verdict on the purchase, but its position is clear. It is against the deal as it believes it will harm competition in the industry. So it has put several hurdles in Microsoft's way over the past few months.

With all the FTC news today I'm surprised I hadn't seen anyone share that the rep. from Tennessee asked Khan directly about why they were siding with Sony as opposed to Microsoft in the Xbox vs PlayStation case. pic.twitter.com/PtGJ78Ku0p

— Destin (@DestinLegarie) April 19, 2023