The Federal Trade Commission has filed a lawsuit to block Microsoft’s proposed acquisition of video game company Activision Blizzard. This antitrust challenge could potentially expedite the conclusion of the merger. In a filing on Monday, the FTC requested a restraining order and injunction to halt Microsoft’s $69 billion purchase of the California-based gaming company, which is known for popular franchises like Call of Duty and World of Warcraft. Microsoft, the maker of the Xbox game system, has been struggling to obtain worldwide approval for the deal, with just over a month left before the deadline, as outlined in the contract with Activision.
“We welcome the opportunity to present our case in federal court,” stated Brad Smith, Microsoft’s vice chair and president. “We believe that expediting the legal process in the US will ultimately foster more choice and competition in the market.” The FTC previously took Microsoft to court to block the merger, but the case is now set for trial with the agency’s in-house judge starting on August 2. This administrative process does not prevent the deal from being completed. The contract between Microsoft and Activision required the transaction to be finalized by July 18, but the latest action by the FTC aims to prevent that from occurring.
“In light of the public reporting that Microsoft and Activision Blizzard are considering imminently closing their deal, we have filed a request for a temporary restraining order to prevent them from doing so while our review continues,” stated the FTC in a statement on Monday. Apart from the US, Microsoft’s other major hurdle lies in the United Kingdom, where antitrust regulators have also taken action to block the acquisition.
The all-cash deal, announced in January 2022, has faced intense scrutiny from regulators worldwide due to concerns that it would give Microsoft and its Xbox console control over Activision’s popular franchises, providing an unfair advantage in the growing business of cloud-based game subscriptions. If completed, it could potentially be the most expensive merger in the history of the tech industry. (Read more Microsoft stories.)
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
