US FTC Asks Court to Block Microsoft From Closing Activision Deal
The Federal Trade Commission (FTC) has taken action to halt Microsoft’s proposed acquisition of Activision Blizzard, seeking a court order to block the $69 billion deal.
The FTC filed a lawsuit against the companies in San Francisco and requested a temporary restraining order.
The regulatory body expressed concerns that if the deal were to proceed as planned, the combined entity could immediately begin making significant changes to Activision’s operations and business strategies.
The FTC’s primary apprehension revolves around the potential consequences of the merger, as it believes Microsoft could gain access to sensitive business information held by Activision.
The regulatory body also fears that key personnel within Activision may be eliminated, game development efforts could be altered, and new contractual relationships might be formed on behalf of Activision without adequate oversight.
To prevent these potential disruptions and protect the competitive landscape of the industry, the FTC seeks legal intervention to halt the transaction.
By pursuing a temporary restraining order, the FTC aims to prevent Microsoft and Activision from finalizing the deal before further examination and resolution of the regulatory concerns.
The outcome of this legal battle will determine whether Microsoft can proceed with its acquisition of Activision Blizzard or if additional scrutiny and potential alterations to the deal will be required.
The FTC’s intervention highlights the significance of maintaining fair competition within the gaming industry and underscores the potential implications of such a large-scale acquisition.
