Feds move to block $69 billion Microsoft-Activision merger

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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., which would be the largest deal in Microsoft's history as well as the largest video game deal ever, according to regulators. However, the lawsuit — the first hearing in which is scheduled for August 2, according to court filings — doesn't prevent a deal from closing in the meantime, the Associated Press reports.

"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.

, would give Microsoft and its Xbox console control of Activision's hit franchises, including"Call of Duty,""Overwatch" and"Diablo." "With control of Activision's content, Microsoft would have the ability and increased incentive to withhold or degrade Activision's content in ways that substantially lessen competition," the FTC said in its Monday filing."This loss of competition would likely result in significant harm to consumers in multiple markets at a pivotal time for the industry.

 

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