FTC Sues To Block Microsoft's Acquisition Of Activision Blizzard; Microsoft Welcomes It

The U.S. Federal Trade Commission (FTC) has sued to block Microsoft's MSFT acquisition of video game maker Activision Blizzard ATVI, stating that the deal will hurt consumer choice and competition.

What Happened: The U.S. FTC has filed a temporary restraining order and injunction from a US federal district court to prevent Microsoft and Activision Blizzard from closing the deal.

See Also: Xbox’s Head Phil Spencer On The Microsoft-Activision Deal: ‘I’m Confident We’ll Find Solutions’

"Both a temporary restraining order and a preliminary injunction are necessary because Microsoft and Activision have represented that they may consummate the proposed acquisition at any time," the FTC said in its complaint.

The FTC complaint comes when Microsoft has appealed the U.K. Competition and Market Authority’s decision to block the acquisition, and the hearing is underway.

"We welcome the opportunity to present our case in federal court. We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market," said Microsoft president Brad Smith.

Why It's Important: Microsoft announced plans to acquire Activision Blizzard in a $68.7 billion deal back in Jan. 2022. Since then, the company has received regulatory approvals in major jurisdictions like the European Union, China, and Japan.

However, the clock is ticking for both Microsoft and Activision Blizzard, with the deal deadline set for July 18, 2023.

Microsoft's acquisition of Activision Blizzard is also its biggest ever, eclipsing its previous biggest acquisition, which was that of LinkedIn, for $26.2 billion. This is also the biggest acquisition in the gaming industry.

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