The US Federal Trade Commission has recently plans to file a court order to block Microsoft Corp’s acquisition of Activision Blizzard.
The FTC seeks a court order to block the acquisition of Activision by Microsoft.
The U.S. Federal Trade Commission (FTC), responsible for enforcing antitrust laws, had previously requested an administrative judge to block Microsoft Corp’s acquisition of Activision Blizzard. The FTC’s argument was based on concerns that the deal would grant exclusive access to Activision games on Microsoft’s Xbox, potentially excluding Nintendo consoles and Sony Group Corp’s PlayStation.
While the European Union approved Microsoft’s $69 billion bid to acquire Activision in May, British competition authorities had blocked the takeover in April.
Recently, Microsoft’s shares experienced a 0.8% increase, while Activision’s shares declined by 0.5%.
According to a source, the FTC intends to file for the court order in the Northern District of California.
In a statement, Microsoft president Brad Smith expressed “We welcome the opportunity to present our case in federal court”, while Activision chose not to comment.
Microsoft has asserted that the acquisition would be advantageous for both gamers and gaming companies. They have even offered to sign a legally binding consent decree with the FTC, ensuring that “Call of Duty” games would be accessible to competitors such as Sony for a duration of ten years.
The case demonstrates the assertive stance on antitrust enforcement adopted by the administration of President Joe Biden.
However, antitrust experts believe that the FTC may encounter difficulties in persuading a judge to block the acquisition. This is due to the voluntary concessions put forward by Microsoft, which aim to address concerns about the potential domination of the gaming market.
