Microsoft is in another legal hurdle as the US Federal Trade Commission (FTC) appealed an injunction to temporarily block the $68.7 billion acquisition of Activision Blizzard. The FTC has appealed its decision to block the proposed merger between Microsoft and Activision in federal court, alleging potential harm to competition in the console, cloud gaming and game subscription industries. The FTC’s internal court needs more time to assess the situation and decide whether the merger would be harmful to consumers.
This isn’t the first time regulators are hesitant to give Microsoft the green light. Earlier this year, the UK’s Competition and Markets Authority (CMA) ruled against the Microsoft-Activision deal over allegations it stifled competition in the gaming industry.
Earlier this year, Microsoft signed a 10-year deal with Nintendo to ensure future Call of Duty titles release on the same day and feature equal on Nintendo consoles. Microsoft also offered a similar Call of Duty deal to Sony.
Looking ahead, several notable executives from Microsoft, Sony and Activision Blizzard will testify in US federal court. Top Microsoft executives, including Xbox Game Studios CEO Phil Spencer and Microsoft CEO Satya Nadella, will defend themselves in court Friday against the FTC’s injunction request. Sony Interactive Entertainment president and CEO Jim Ryan and Activision Blizzard CEO Bobby Kotick are also expected to take to court to express their opinions.
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