US moves to block Microsoft’s Activision takeover

US moves to block Microsoft’s Activision takeover

Regulators in the US have requested a judge blocks Microsoft from completing its $69bn purchase of Activision Blizzard – the publisher of video games such as Call of Duty.

The US Federal Trade Commission (FTC) said the deal, which would be the largest in the history of the video games industry, could “substantially lessen competition” in the sector.

The UK has already blocked the deal over concerns it would hurt competition, but the EU has approved it. 

A trial in the US will begin in August. Microsoft’s president Brad Smith said, in response to the FTC announcement, that Microsoft welcomed the “opportunity to present our case in federal court” in its attempt to persuade US regulators to allow the deal to be completed.

The FTC said in a court filing that a “preliminary injunction is necessary to… prevent interim harm” while the regulator determines whether “the proposed acquisition violates US antitrust law”.

Microsoft’s proposed takeover has split global regulators and for the deal to go through the parties need approval from regulatory bodies in the UK, EU and the US.

The European Commission approved the acquisition, saying Microsoft’s offer of 10-year free licensing deals – which promise European consumers and cloud game streaming services access to Activision’s PC and console games – means there would be fair competition in the market.

But the UK’s CMA block the deal in April, saying there was concern that the takeover would offer reduced innovation and less choice for gamers. Microsoft and Activision hit out at the UK’s decision saying it will appeal.