Federal Trade Commission gets restraining order on Microsoft-Activision Blizzard deal

The US Federal Trade Commission (FTC) confirmed that it requested a temporary restraining order, freezing Microsoft’s intended acquisition of the gaming giant Activision Blizzard. 

In a statement issued by the regulator, it claimed that previously, Microsoft and Activision Blizzard stated that they were unable to finalise their deal due to antitrust reviews conducted by other jurisdictions.

However, they have not given any guarantees that they will maintain this stance. Given recent reports indicating that Microsoft and Activision Blizzard are contemplating closing the deal soon, they have submitted a request for a temporary restraining order to prevent them from completing the transaction while the review is ongoing.

Regulators worldwide have offered a varied response to Microsoft’s proposed acquisition of Activision Blizzard for $68.7 billion. However, the Federal Trade Commission (FTC) appears to be the most vocal critic. It has reportedly filed for an injunction to halt the progress of the deal until the agency can issue its official verdict later this year.

Last year, Microsoft announced its plan to acquire the gaming industry leader in an effort to strengthen its Xbox and PC gaming division. This move aimed to enhance Microsoft’s position in the face of long-standing competition from Sony. However, the recent remarkable Xbox showcase clearly demonstrates that the battle between the two companies is far from settled.

Subsequently, a wave of apprehensive remarks emerged from antitrust regulators globally, expressing concerns that such industry consolidation brings limited advantages and numerous risks for consumers. Multiple investigations are currently in progress, and in the United Kingdom, efforts to block the deal have been initiated, although an appeal has been filed in court.