2023-06-13 07:44:47
While we are barely recovering from the Xbox Games Showcase announcements, Microsoft’s takeover of Activision Blizzard is back in the spotlight. We learn today that the FTC has filed for an injunction to prevent the merger.
FTC Strongly Opposes Activision-Blizzard Takeover
While Microsoft appealed the UK CMA’s decision last May, the FTC now fears the firm is preparing to complete the acquisition regardless of the UK lockdown.
As can be read in the columns of
The Verge, she asked a federal court to issue a temporary restraining order and injunction to prevent the merger. In her complaint, she states in particular:
A temporary restraining order and preliminary injunction are needed because Microsoft and Activision have said they can complete the proposed acquisition at any time.
[…]
News reports began circulating suggesting that the defendants were seriously considering completing the proposed acquisition despite ongoing administrative litigation and CMA orders.
If the court chooses to issue a temporary restraining order, it would prevent Microsoft from closing the deal for two weeks. A preliminary injunction would prevent the firm from concluding the agreement until the FTC has won its case, while a hearing is scheduled for August 2. So it’s all a matter of timing.
Microsoft seems confident
On
TwitterMicrosoft vice president Brad Smith said the FTC’s decision to take legal action should speed up the decision.
Today’s decision by the FTC to file a lawsuit in the Activision case in federal court is expected to expedite the decision-making process.
He also explains that Microsoft has confidence in his case, and told The Verge that speeding up the process in the US would benefit the market:
We believe that speeding up the legal process in the United States will ultimately bring more choice and competition to the marketplace.
In an email first addressed to its employees and later made public, Activision CEO Bobby Kotick said the FTC’s actions are “a positive development” in the merger’s progress because they ” speed up the legal process”.
As a reminder, the FTC had launched a lawsuit once morest Microsoft in December 2022 before its own administrative court to block the takeover. This new step comes today to relaunch hostilities, and we should have new elements on the case soon.
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