FTC to block Microsoft’s Activision Blizzard merger with injunction
The Federal Trade Commission (FTC) is expected to file a preliminary injunction to block Microsoft’s $69 billion acquisition of video game giant Activision Blizzard, according to MLex, a news service that tracks regulatory developments. The regulator has two closed-door meetings scheduled on Monday, which is when the agency is expected to request the temporary order. The injunction would stop the deal, which has a July 18 termination deadline. The FTC previously filed a complaint in December, citing antitrust concerns and stifled competition across the video game sector if the $95-per-share deal were to proceed. A hearing for the case in the FTC’s administrative court is scheduled for August. UK regulators have also moved to quash the mega-merger over fears that it could harm competition. Microsoft has appealed the decision.
FAQs:
What is the FTC?
The Federal Trade Commission is an independent agency that aims to protect consumers and promote competition in the US.
Why is the FTC blocking the deal between Microsoft and Activision Blizzard?
The FTC filed a complaint in December citing antitrust concerns and stifled competition if the $69 billion deal was allowed to proceed.
What does the temporary order mean?
The preliminary injunction that the FTC is expected to file would halt the deal between Microsoft and Activision Blizzard.
Can Microsoft and/or Activision Blizzard renegotiate the terms of the sale?
Either party can walk away, extend, or renegotiate the terms of the sale until the July 18 termination deadline.
What is the UK’s role in this?
UK regulators have also moved to quash the merger over fears that it could harm competition. Microsoft has appealed the decision.
Injunction Filed by FTC to Block Microsoft’s Merger with Activision Blizzard
Microsoft’s efforts to acquire video gaming giant Activision Blizzard for $69 billion may be thwarted by the Federal Trade Commission (FTC). According to regulatory news aggregator MLex, the FTC is expected to file a preliminary injunction to block the deal on Monday, amid antitrust concerns and stifled competition across the video-game sector. The move would halt the acquisition, which has a July 18 termination deadline. This will be the second time the FTC has attempted to block the deal. Last month, European Union regulators approved Microsoft’s bid, subject to an agreement that rival companies would continue to have access to Activision-developed games. The FTC is yet to comment.