US FTC asks court to block Microsoft acquisition of Activision
The FTC said Microsoft and Activision had signaled the deal could close as soon as Friday
The Federal Trade Commission asked a court to temporarily block Microsoft Corp’s acquisition of Activision Blizzard on Monday, seeking to halt the deal from closing before the government’s case against the $69 billion deal is heard.
The FTC said Microsoft and Activision had signaled the deal could close as soon as Friday and asked a federal judge to block any final agreement before 11:59 p.m ET June 15.
The FTC said the deal, which would be the largest for Microsoft and the largest in the history of the video game industry, would give Microsoft the “ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition.”
The FTC said without action by a judge the combined firm “could alter Activision’s operations and business plans,” and could allow the software giant to access sensitive business information.
The FTC, which enforces antitrust law, has already asked an in-house administrative judge to block the transaction on antitrust grounds in early December, arguing it would give Microsoft’s Xbox exclusive access to Activision games, leaving Nintendo consoles and Sony Group Corp’s PlayStation out in the cold.
Microsoft’s bid to acquire the “Call of Duty” videogame maker in a $69 billion deal was approved by the EU in May, but British competition authorities blocked the takeover in April.
Shares in Microsoft closed up 1.5% Monday, while Activision fell 0.8%.