Microsoft finds itself in yet another legal hurdle as the US Federal Trade Commission (FTC) has requested an injunction to temporarily block its 23 $700 million acquisition of Activision Blizzard Blizzard. The U.S. Federal Trade Commission (FTC) is appealing in federal court a decision to block a proposed merger between Microsoft and Activision, arguing it could harm competition in the console, cloud gaming and game subscription industries. The FTC’s internal courts need more time to assess the situation and rule on whether the merger would be detrimental to consumers.
This is not the first time regulators have hesitated to pursue a merger. Give Microsoft the green light. Earlier this year, Britain’s Competition and Markets Authority (CMA) ruled against Microsoft’s Activision deal, accusing it of stifling competition in the gaming industry.
Earlier this year, Microsoft signed 10 a one-year deal with Nintendo to secure future Call of Duty titles. The game was able to be released and feature equivalent on the Nintendo system the same day. Microsoft also proposed a similar Call of Duty deal to Sony.
Looking ahead, several notable executives from Microsoft, Sony, and Activision Blizzard will testify in U.S. federal court. Key Microsoft executives, among them Xbox Game Studios CEO Phil Spencer and Microsoft CEO Satya Nadella, will fight the FTC’s injunction in court on Friday. Request for defense. Sony Interactive Entertainment President and CEO Jim Ryan and Activision Blizzard CEO Bobby Kotick are also expected to appear in court to express their views.
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