FTC Reportedly Plans To File An Injunction To Block Microsoft Activision Merger
Microsoft was in talks to merge with "Call of Duty" publisher Activision-Blizzard in a $68.7 billion move to become the alpha and omega of gaming. The federal government of both the United States and courts in the United Kingdom challenged the legality of the acquisition essentially from the star. Originally, according to CNBC, the purchase was supposed to be completed on July 18th.
Now, the Federal Trade Commission, the arm of federal law enforcement that would have jurisdiction over such a huge purchase, is going to file an injunction to stop the purchase from going forward. Prior to any money changing hands or any deals reaching the front desk of any gaming executives, the merger must now pass federal muster.
The federal government, Microsoft, and Activision Blizzard now have to ensure all of each respective company's i's are dotted and t's are crossed in a way that wouldn't violate antitrust laws, or interfere with the rights of customers.
Waiting on the Fed's decision
Microsoft, however, doesn't appear to be sweating too hard. The company's President, Brad Smith said to CNBC "We welcome the opportunity to present our case in federal court. We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market." Whether or not that's an accurate statement, is up to federal judges to decide.
If the deal goes through, Microsoft's hold on one of the largest companies in gaming could have noticeable ramifications for gamers. As far as console gaming is concerned, there's really only Microsoft, Sony, and Nintendo. Activision Blizzard falling under the jurisdiction of Microsoft might mean there are more console exclusives, fewer overall game choices for other game systems, and pressure for developers to only develop for certain platforms.
It should be noted that courts in the European Union approved the merger back in May. The case will reportedly go to court in August.