Looks like only the EU is okay with it.
The Federal Trade Commission has sued to, temporarily at least, block the Microsoft/Activision merger.
Filed Monday in San Francisco, the suit aims to obtain a temporary restraining order and injunction to block the absolutely massive $69 billion deal. Previously, the deal got the go ahead from the EU, though the UK has currently blocked it, with Microsoft filing an appeal. Notably, both commissions were more concerned with the effect it would have on the cloud gaming market.
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.
Brad Smith, Microsoft’s vice chair and president
In a Monday letter to employees, Activision head Bobby Kotick called the FTC filing a ”positive development”, as it would accelerate the process of making their case to a federal judge.
While the FTC took Microsoft to court last year to block the merger, that trial is set to be seen by the U.S. agency’s in-house judge on August 2nd. This, coincidentally, did not preclude both parties from closing the deal. Which could create a problem, as the deal is supposed to close on July 18th, rougly two weeks earlier.
If the FTC judge finds the merger unlawful, it “would be difficult, if not impossible” to reverse course, according to the filing. Hence the FTC’s request for a preliminary injunction to block the acquisition. The filing notes that, if the deal went through, the companies could begin altering Activision’s operations and game development, as well as access sensitive information and firing key personnel. The FTC gave a statement to such effect:
Microsoft and Activision Blizzard have represented in the past that they cannot close their deal due to antitrust reviews of the transaction in other jurisdictions. But Microsoft and Activision have not provided assurances that they will maintain that position. In light of that, and public reporting that Microsoft and Activision Blizzard are considering closing their deal imminently, we have filed a request for a temporary restraining order to prevent them from closing while review continues.
Notably, Microsoft has faced opposition by rival Sony. In an attempt to curtail this, Microsoft offered a 10-year deal to Nintendo licensing the Call of Duty franchise for Nintendo systems, making much the same offer to Sony. They’ve also faced pushback from other organizations, such as the U.S. consumer advocacy group Public Citizen; they praised the FTC’s move to block the merger, saying:
Microsoft is pushing to culminate the purchase of Activision before the agency can finish its process. By filing in federal court to enjoin the transaction, the FTC is showing that it won’t back down in the face of Microsoft’s escalatory tactics.
Matt Kent, Public Citizen competition policy advocate
Source: The Associated Press
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