FTC asks court to prevent Microsoft closing Activision Blizzard deal early
At a glance:
The Federal Trade Commission has asked a US court to prevent Microsoft from completing its proposed acquisition of Activision Blizzard before the Commission's legal challenge against the deal has been addressed.
In a new court filing to the US District Court of Northern California, spotted by VGC, the FTC requested a temporary restraining order and preliminary injunction against both Microsoft and Activision Blizzard, claiming to two companies "have represented that they may consummate the proposed acquisition at any time."
Microsoft originally estimated its proposed acquisition of Activision Blizzard would be completed by June 30, 2023. However, the FTC issued a legal challenge in December – with the hearing set for August 2 – and the UK's Competition and Markets Authority has blocked the deal, although Microsoft and now Activision Blizzard are both appealing to overturn this decision.
The Commission said press reports have indicated both companies were "seriously contemplating" closing the deal, despite the CMA's orders and the upcoming FTC hearing.
The FTC once again warned that Microsoft's ownership of Activision Blizzard would "substantially lessen competition or tend to create a monopoly" in the markets of high-performance consoles, multi-game library subscription services, and cloud gaming subscription services.
The Commission said the combined company at the end of the transaction would have the "ability and increased incentive to withhold or degrate Activision's valuable gaming content to undermine its competitors," leading to reduced consumer choice, less innovation, higher prices and/or lower quality products.
As such, it says a restraining order blocking Microsoft and Activision from
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