FTC files injunction to block Microsoft deal to acquire Activision Blizzard
2023.06.12 17:44
© Reuters.
Investing.com — The Federal Trade Commission on Monday filed a preliminary injunction and temporary restraining to block Microsoft’s $68.7 billion acquisition of Activision Blizzard (NASDAQ:) amid anti-trust concerns.
“A preliminary injunction is necessary to maintain the status quo and prevent interim harm to competition during the pendency of the FTC’s administrative proceeding to determine whether the Proposed Acquisition violates U.S. antitrust law,” the FTC said in a filing on Monday.
“A temporary restraining order is necessary to maintain the status quo while this Court decides whether to grant the requested preliminary injunction,” it added.
The move to block the deal comes just ahead of the July 18 deadline, when Microsoft (NASDAQ:) said it intended to close the deal. If the tech giant failes to get the deal over line, it would be on the hook for $3B in breakup fees to Activision Blizzard.
The FTC alleged the acquisition would allow Microsoft to suppress competitors including Sony (NYSE:) by making Activision Blizzard’s top titles exclusive to Xbox gaming consoles.
“With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition—including competition on product quality, price, and innovation,” the FTC said in a court filing.
Microsoft and Activision Blizzard were up marginally in after-hours trade.
