The US Federal Trade Commission is filing an injunction to block Microsoft from acquiring Activision for its initial $69 billion deal. According to a new report by CNBC, the FTC is seeking a court order to stop the deal from going through before its 18 July deadline.
The FTC has already openly expressed its issues with Microsoft’s Activision deal. In December last year, the Federal Trade Commission said that it would sue Microsoft in an attempt to block the acquisition. The FTC believes that Microsoft’s purchasing of Activision will “suppress competitors” by enhancing its space in the cloud and subscription gaming industry.
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Details reveal that the FTC has put a restraining order on Microsoft preventing the company from moving forward with its sale before the deadline in July. The FTC says the restraining order is necessary to maintain the status quo of the deal until the Court decides whether to grant the injunction.
The court filing reads:
“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 [redacted] without any further notice to the Commission. A preliminary injunction is necessary to maintain the status quo and prevent interim harm to competition during the pendency of the FTC’s administrative proceeding to determine whether the Proposed Acquisition violates U.S. antitrust law. A temporary restraining order is necessary to maintain the status quo while this Court decides whether to grant the requested preliminary injunction.”
Microsoft has also responded to the injunction saying that it was actually a good thing…. for some reason. In a statement, Microsoft president Brad Smith says that the FTC’s filing should help accelerate the deal.
“Today’s action by the FTC to file suit in our Activision case in federal court should accelerate the decision-making process. This benefits everyone. We always prefer constructive and amicable paths with governments but have confidence in our case and look forward to presenting it.”
Source: FTC
