The United States Federal Trade Commission has requested a restraining order and preliminary injunction that would prevent Microsoft’s proposed purchase of Activision Blizzard from going through. The FTC actually filed an antitrust lawsuit against Xbox last December over the deal, and this move would block it from happening while that suit is being deliberated. The FTC is under the impression that the deal could close by this Friday, and is seeking a decision that would prevent that beforehand. In a statement, Microsoft president Brad Smith revealed an eagerness to get the legal process underway.
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“We welcome the opportunity to present our case in federal court,” Smith’s statement reads. “We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market.”
Xbox’s proposed purchase was approved in the EU in May, following several concessions. Xbox has offered contracts to several different companies, guaranteeing that the Call of Duty franchise will remain on multiple gaming platforms. Xbox has pointed to these concessions as proof that the deal will not hurt competition, and would notably bring the series back to Nintendo platforms after several years missing. The deal was blocked in the UK in April, after regulators raised concerns over cloud gaming. Ironically enough, multiple cloud gaming platforms pushed back against those concerns, arguing that the deal would actually stand to benefit them.
More than a year after Xbox announced its plans to acquire Activision Blizzard, it feels like it’s still difficult to figure out how things are going to shake out. During yesterday’s Xbox Showcase, Phil Spencer was seen wearing a Hexen shirt, which is a franchise owned by Activision Blizzard. Some saw this as a hint about where things might be go should the deal be approved, but until all hurdles can be cleared, fans are just going to have to keep speculating. It makes sense that a deal of this size would take a long time to get approved, but hopefully an end is in sight, one way or another!
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