FTC files to block Microsoft's Activision acquisition as deadline approaches

CNBC reported on theThe FTC said it fears that should Microsoft be allowed to buy Activision, Microsoft would have the power to “withhold or degrade” Activision’s gaming products, through price, game quality, experience on competitors’ offerings or “withholding content from competitors entirely.”

In other words, the FTC is worried that Microsoft could withhold popular games from Activision Blizzard’s library from launching on other game consoles, like those sold by Sony. Or it could charge more for games that launch on other consoles.

If the parties were allowed to merge before the case made its way through an administrative proceeding, the FTC argued that “reestablishing the status quo would be difficult, if not impossible.” The injunction request comes as the deadline for the deal was coming down to the wire. Both the FTC’s hearing date and that of an appeal to the UK’s Competition and Markets Authority’s decision to block the deal came after the parties’ deadline of July 18. Meanwhile,The FTC told the court that a preliminary injunction was necessary “because Microsoft and Activision have represented that they may consummate the Proposed Acquisition at any time.

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