US FTC files suit to halt Microsoft's Activision Blizzard deal: Report
The US Federal Trade Commission (FTC) has applied for a "temporary restraining order" and preliminary injunction seeking to block Microsoft's acquisition of Activision Blizzard before the deal's July 18 deadline, the media reported.
The US Federal Trade Commission (FTC) has applied for a "temporary restraining order" and preliminary injunction seeking to block Microsoft's acquisition of Activision Blizzard before the deal's July 18 deadline, the media reported.
The FTC expressed concern that if Microsoft is allowed to acquire Activision, Microsoft will be able to "withhold or degrade" Activision's gaming products through price, game quality, experience on competitors' offerings, or "withholding content from competitors entirely", reports CNBC.
Essentially, the FTC is concerned that Microsoft could block popular games from Activision Blizzard's library from being released on other consoles, like Sony, or charge more for games that are released on those consoles.
The FTC argued that allowing the parties to merge before the case went through an administrative proceeding would make "reestablishing the status quo difficult, if not impossible", the report said. The request for an injunction comes as the deal's deadline approaches
Meanwhile, the European Commission has approved, under the EU Merger Regulation, the proposed acquisition of gaming giant Activision Blizzard by Microsoft for $68.7 billion.
The Commission said in a statement that it has based its decision on hard evidence, and on extensive information and feedback from competitors and customers, including from game developers and distributors as well as cloud game streaming platforms in the EU. Microsoft entered into a $68.7 billion deal to buy Activision in January 2022.
The FTC filed a lawsuit to stop the acquisition in December 2022, choosing to have the case heard by an internal administrative law judge. The FTC's case will be heard on August 2, according to the agency's filing.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of 18x15x12 SIP Strategy: Know in how many years you can build Rs 1.14 crore corpus by investing Rs 15,000 monthly | See calculations
Top Gold ETF vs Top Silver ETF 1-year Return Calculator: Which has given higher return on Rs 10 lakh investment; see calculations to know that
02:00 PM IST