The US Federal Trade Commission (FTC) filed a preliminary injunction to stop Microsoft from completing the $69 billion buyout of gaming giant Activision Blizzard.
The FTC court filing said A preliminary injunction is necessary to prevent interim harm” while the FTC determines whether “the proposed acquisition violates US antitrust law?”
The request for preliminary injunction was filed at the Northern California District Court, the US government sought to prevent the finalization of the deal before a July 18 deadline. An FTC hearing is set for August to review and argue the merits of the deal but this FTC appeal to the federal court will potentially see Microsoft subject to a restraining order blocking the deal.
Microsoft President Brad Smith said, “We welcome the opportunity to present our case in federal court. We believe accelerating the legal process in the US will ultimately bring more choice and competition to the market.”
The injunction comes more then a month after the UK’s Competition and Markets Authority said it would block the $69 billion deal. Microsoft has had some success with its proposed merger. The European Union had approved the deal but Microsoft for sure needs UK and US support to move forward.
