US Senators are asking the Federal Trade Commission to investigate the Microsoft/Activision deal, over concerns regarding Activision’s past scandals.
Microsoft announced in January, 2022 that it was purchasing Activision Blizzard for $68.7 billion. Microsoft has been buying gaming studios, both for their immediate benefit, as well as their potential to help the company as it competes in the burgeoning metaverse.
One of the major challenges the company faces with the acquisition, however, is Activision’s history of sexual harassment and discrimination. Microsoft CEO Satya Nadella addressed this in his comments when the deal was announced, saying: “After the close, we will have significant work to do in order to continue to build a culture where everyone can do their best work.”
Nadella’s assurance is not enough for Senators Elizabeth Warren, Bernie Sanders, Sheldon Whitehouse, and Cory Booker, however. The four senators have written a letter urging the FTC to take a closer look at the deal, expressly over concerns the merger could undermine employee-led efforts to hold Activision’s leadership accountable. Similarly, it’s believed Activision CEO Bobby Kotick will be leaving following the merger, effectively being given a golden parachute and a way to save face and avoid accountability.
“Workers at Activision Blizzard, following years of rampant sexual misconduct and discrimination and unfair labor practices, have led calls for greater transparency and accountability in the gaming industry, and we are deeply concerned that this acquisition could further disenfranchise these workers and prevent their voices from being heard,” said the senators.
The senators also quoted FTC Chairwoman Khan as recently stating that “robust antitrust enforcement can help ensure that workers have the freedom to seek higher pay and better working conditions, and can help promote economic opportunity and widespread prosperity for all.”
The FTC had already declared its intentions to investigate the merger. With the senators’ additional urging, the agency will likely take an even closer look than it originally planned.
