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The U.S. Federal Trade Commission (FTC) will file a preliminary injunction in federal court on Thursday to temporarily block Microsoft’s $69 billion acquisition of Activision Blizzard. They believe the deal should be halted pending a government ruling.
Microsoft has said a “temporary block” could derail the deal, but courts typically don’t consider the real-world consequences. If the court suspends the deal, Microsoft and Activision Blizzard will have to delay their agreement, which was due to terminate on July 18.
At a hearing scheduled for five days by a federal judge in San Francisco, the antitrust enforcer will argue that it needs to hold Microsoft Corp and Activision Blizzard on the deal pending a federal court ruling on the merger case because of internal scrutiny at the agency. The court has yet to rule on whether the deal has harmed competition in the gaming industry.
The FTC is concerned that, without federal court action, the merger of the two companies “could alter Activision Blizzard’s operations and business plans” and could result in Microsoft gaining access to sensitive corporate information.
It is reported that the FTC’s internal administrative hearing is scheduled to start on August 2, and resolving the US FTC’s lawsuit is one of the key antitrust battles between Microsoft and Activision Blizzard in their global efforts to complete the deal.
The FTC believes the deal will be the largest ever for Microsoft and the largest in the history of the gaming business. It would give Microsoft “the ability and incentive to diminish or degrade Activision Blizzard’s content,” thereby substantially reducing competition.
In addition, the FTC had asked its internal administrative court in December to block the deal, saying the merger would give Microsoft’s Xbox console exclusives to Activision Blizzard games, while Nintendo and Sony would be excluded.
Microsoft has stated that this deal will benefit both gamers and game companies, and has submitted a legally binding agreement to the FTC, promising to provide competitors including Sony with “Call of Duty” over the next ten years. “game.
Hearings will begin on June 22 and run through June 29. Executives including Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick will testify as witnesses.
Source: IT Home
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