FTC Will Try To Block Microsoft's Activision Blizzard Acquisition: Report

Microsoft has struggled to get governments to clear its acquisition of Activision Blizzard since January 2022. The UK blocked the deal, but the European Union approved it earlier this year.

Now the Federal Trade Commission (FTC) is set to file for an injunction on Monday seeking to block Microsoft’s proposed acquisition of Activision Blizzard, a person familiar with the matter told CNBC.

Filing an injunction would enable the FTC to stop the acquisition from going through before the deal’s July 18 deadline.

The Northern District of California judge overseeing the case would need to approve the order.

“The FTC had already sued to block the $68.7 billion acquisition, choosing to bring the case before its internal administrative law judge,” CNBC wrote. “Through that trial-like process, the ALJ would make an initial decision that could be appealed to the full commission for a vote. After that, Microsoft could appeal to a federal court should the decision not go its way. The case is set to go before the ALJ in August.”

Microsoft President Brad Smith welcomes the opportunity to present its case in federal court,” he told CNBC, and believes the U.S. legal process will bring more choice and competition to the market.

Microsoft believes the deal would benefit gamers and advertisers trying to reach them.

Antitrust experts believes the FTC “faces an uphill battle to convince a judge to block the deal, because of the voluntary concessions offered by Microsoft to allay fears it could dominate the gaming market,” reports Reuters.

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