30 Venture Capital Firms Tell the FTC to Back Off on Microsoft/Activision Blizzard

30 venture capital firms and investors have petitioned the U.S. Federal Trade Commission (FTC) to halt its insane legal attempt to unwind Microsoft’s Activision Blizzard acquisition. The message is clear: The FTC’s actions are an expensive waste of time and contrary to U.S. law and business norms.

“Recent enforcement actions and policy initiatives by the Federal Trade Commission pose a serious threat to American innovation,” the group’s letter to the FTC reads. “We are particularly troubled by the FTC’s continued and unprecedented efforts to challenge Microsoft’s acquisition of Activision-Blizzard. Despite having lost its case at the District Court, the FTC now argues on appeal that the legal standards it must meet to win a preliminary injunction blocking a merger should be lessened and that district courts should be limited in their ability to consider the full market reality of the transactions before them. If the FTC’s approach were adopted, many more acquisitions would be subject to lengthy and expensive regulatory review and litigation that few if any transactions would be able to withstand. As a result, many transactions will be abandoned upon challenge or never pursued, grinding American innovation to a halt. This will be particularly harmful to the current generation of entrepreneurs – who are more diverse and reflective of America as a whole – who will not have the same opportunities as those who came before them.”

The venture capital firms and investors have added their names to the list of 7 seven venture capitalist firms that previously petitioned the FTC in September to stop the madness. In a statement, Microsoft notes that the 30 new firms and investors are significant contributors to the U.S. innovation economy that collectively manage over $130 billion in assets.

“Today’s statement of support underscores the need for regulators to consider how their legal arguments in one case can have a far-reaching negative effect on innovation and those who enable it,” Microsoft general counsel Jon Palmer writes. “Competition law and policy affects not just the companies directly involved in a case, but also those who rely on the investment economy to nurture their ideas and create innovative technologies. These investors, and the companies they help support, deserve a regulatory environment that helps them grow new businesses and create jobs, not one that stymies innovation.”