Federal regulators have filed a legal motion to prevent Microsoft from completing its $69 billion deal for Activision Blizzard.
The Federal Trade Commission on Monday filed for a temporary restraining order and an injunction in the Northern District of California to stop the deal from closing.
Microsoft last year proposed to buy video game developer Activision Blizzard for $69 billion. The FTC sued the company in December to stop the merger, claiming it would harm competition in the video-game industry. The first hearing in that case is scheduled for August 2, according to court filings.
Microsoft has previously indicated that the deal would close by July 18, despite U.S. regulators’ ongoing review and a recent rejection of the merger from UK regulators.
“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,” an FTC spokesperson said in a statement to CBS MoneyWatch. “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.”
“We welcome the opportunity to present our case in federal court,” Microsoft president Brad Smith said in a statement. “We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market.”
This is a developing story.
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