FTC to File Injunction Blocking Microsoft's Acquisition of Activision Blizzard

Quincy Jon, Tech Times 12 June 2023, 03:06 pm

The US Federal Trade Commission (FTC) is preparing to file an order to stop Microsoft Corp. from buying Activision Blizzard for $69 billion, according to a source.

The European Union authorized the purchase in May after British competition regulators banned it in April.

The US District Court for the Northern District of California will request a temporary restraining order in the filing, which is yet to be made public, according to CNN. While the FTC's internal court deliberates the matter, this order tries to stop the corporations from finalizing the transaction.

The FTC voiced its first reservations about the deal early in December, upholding antitrust law. The commission contended that the purchase would give Microsoft's Xbox exclusive access to Activision titles, possibly eliminating Nintendo and Sony's PlayStation, Reuters reported.

The commission brought its action before an internal administrative law court to prevent the $68.7 billion merger. In this procedure, the judge makes a preliminary determination that may be challenged and put to a vote by the whole commission. Microsoft may appeal in federal court if necessary. August is the tentative date for the administrative law judge trial.

Microsoft is Ready For Trial

Microsoft also intends to challenge the Competition and Markets Authority's ruling to prevent the merger, and the appeal is scheduled to be heard this summer, just beyond the purchase deadline.

Microsoft President Brad Smith emphasized the company's assertion that hastening the legal procedure in the US would eventually encourage choice and competition in the market. He said that Microsoft welcomes the chance "to present our case in federal court," according to CNBC.

The FTC and UK regulators worry the transaction would hurt the gaming sector by enabling Microsoft to restrict Activision games from competitor platforms. Microsoft has engaged in 10-year license deals with several gaming platforms to ease these worries and guarantee the continuing availability of such games.

The European Union has approved the purchase, describing Microsoft's concessions as adequate to resolve competition concerns; however, the decision in the United States and the United Kingdom is still unknown due to the ongoing legal disputes.