Published , by TJ Denzer
Published , by TJ Denzer
As Microsoft and Activision Blizzard continue to work around competition and market authorities worldwide for its merger, the US Federal Trade Commission (FTC) has signaled it will file an injunction to block the deal. One of the last major barriers to the deal’s completion, the FTC previously sued Microsoft to block the $68.7 billion USD deal. However, now it will bring the case before its internal administrative law judge (ALJ) which may lead to initial decision that allows for the full commission to vote for or against the deal.
The FTC’s decision to file an injunction against the Microsoft and Activision Blizzard deal was reported by CNBC, as shared by sources familiar with the FTC’s activities. In filing the injunction, the FTC would aim to block the deal from closing before a July 18 deadline. The deal would then go before an ALJ in August. Despite the injunction’s intention to delay the deal’s close, Microsoft told CNBC it welcomes the FTC’s injunction because it will allow the company to appeal the case and bring it before a federal judge faster. If it reaches that point, Microsoft signaled confidence that it will come out ahead in its appeal.
The FTC has remained as one of the final blocks to Microsoft’s deal. It was back in November 2022 that the US market authority signaled its intention to sue Microsoft over the deal and stop it from going forward. The FTC followed in saying that a settlement with Microsoft was unlikely as the two entities had not had “substantive talks” on the matter.
Alongside the FTC, the UK’s Competition and Markets Authority has also remained stalwart in not approving the deal, citing concerns about Microsoft’s strong position in the cloud gaming market. Nonetheless, Microsoft has also readied up against the CMA with a lawyer known for overturning the authority’s rulings.
Microsoft looks ready to continue its efforts in court with both the CMA and FTC in spite of matters like the seemingly upcoming injunction. Stay tuned as we continue to watch for the latest updates and news on the deal.