FTC Argues Microsoft's Deal To Buy Activision Should Be Paused

The U.S. Federal Trade Commission on Thursday argued in federal court for a preliminary injunction to temporarily block Microsoft’s acquisition of videogame maker Activision Blizzard, which would stop the deal from closing before the government’s case against it is heard by an administrative judge. From a report: “If this deal is completed, the combined company … is likely to have the ability, an incentive, to harm competition in various markets related to consoles, subscription services and the cloud (for gaming),” FTC lawyer James Weingarten said in the government’s opening arguments in what is expected to be a five-day evidentiary hearing.

The FTC argues it needs a judge to block Microsoft and Activision Blizzard from closing their $69 billion merger until the agency’s in-house court gets to rule on whether the combination hurts competition in the videogame industry. The FTC says the combination would give Microsoft’s Xbox videogame console exclusive access to Activision games, leaving Nintendo consoles and Sony Group’s PlayStation out in the cold. “I think you will see that every piece of evidence shows that it only makes sense for Xbox to make these Activision games to as many people on as many platforms as possible,” Microsoft lawyer Beth Wilkinson said in opening arguments, adding that if an injunction is granted it could result in a three-year administrative proceeding that would kill the deal.

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Source: Slashdot – FTC Argues Microsoft’s Deal To Buy Activision Should Be Paused