FTC's Battle Against Microsoft's Activision Blizzard Takeover Intensifies

Reports suggest that the US Federal Trade Commission (FTC) is preparing to file an injunction to prevent Microsoft's proposed acquisition of Activision Blizzard, worth $68.7 billion. This development follows the UK regulatory authority's decision to block the purchase just two months ago, indicating that the FTC is likely to adopt a similar stance to the deal. Microsoft has been actively seeking regulatory approval for the acquisition, forging partnerships with various platforms like Nvidia, Nintendo, Ubitus, Boosteroid, and EE for 10-year terms. Microsoft even resorted to placing full-page newspaper ads to gain approval, but to no avail. Despite the company's efforts, the CMA blocked the deal in April, and Microsoft has since appealed the decision. As the situation continues to draw attention, it appears that the FTC is now poised to take action.

Microsoft's pending acquisition of Activision Blizzard is facing a potential roadblock as the FTC plans to file an injunction to halt the deal before the July 18 deadline. The CNBC report states that the FTC aims to prevent the acquisition from being finalized, and Microsoft's President Brad Smith has responded to the news by welcoming the opportunity to defend the acquisition in front of a federal court. Smith believes that expediting the legal process will ultimately lead to increased competition and choice in the market. The FTC has yet to issue an official statement on the matter, leaving the fate of Microsoft's acquisition in the hands of the US regulatory environment.

Microsoft's acquisition of Activision Blizzard has already faced legal challenges, with the FTC attempting to block the deal in December. The case will be brought before an administrative law judge in August, giving Microsoft the option to appeal the decision in federal court if necessary. Despite the opposition, Microsoft has hinted that it may proceed with the acquisition even without FTC approval, potentially leading to a court battle. However, the European Union has approved the deal with conditions, requiring Microsoft to offer a free license to European consumers to stream Activision Blizzard titles on other game streaming services. Microsoft's President has confirmed that this will be implemented globally, allowing players to stream any Activision title on any game streaming service. The outcome of the FTC's injunction filing before the July 18 deadline will be closely watched.

Source: CNBC