LOS ANGELES – Microsoft has temporarily been thwarted in its bid to acquire video game maker Activision Blizzard, reported German news agency (dpa).
A US judge granted the Federal Trade Commission’s (FTC) request to temporarily block the merger deal today.
US district judge Edward Davila scheduled a two-day evidentiary hearing on the FTC’s request for a preliminary injunction for June 22 to 23 in San Francisco.
The FTC requested for a permanent injunction and temporary restraining order to prevent Microsoft from completing the acquisition until the commission concludes its own legal proceedings against the merger.
In its initial suit filed in December 2022, the FTC argued that the acquisition would enable Microsoft to suppress competition in the gaming industry, particularly with its Xbox gaming consoles and growing subscription content and cloud-gaming business.
The FTC claims that if the acquisition goes through, Microsoft would gain control over Activision’s content, allowing it to potentially withhold or degrade the latter, leading to reduced competition in terms of product quality, price, and innovation. – Bernama, June 15, 2023
