Federal Trade Commission applies for injunction to block Microsoft's acquisition of Activision Blizzard

In January 2022, Microsoft announced that it would acquire major game maker Activision Blizzard. Since Microsoft has its own game brand 'Xbox', regulators around the world are investigating this acquisition, fearing that the acquisition of Activision Blizzard will collapse the power balance of the game industry. The Federal Trade Commission (FTC) in the United States is also investigating to prevent Microsoft's acquisition plan, and finally on June 12, 2023 (Monday), a temporary restraining order and a preliminary injunction seeking to block the acquisition It was revealed that he applied for

FTC files to block Microsoft - Activision
https://www.cnbc.com/2023/06/12/ftc-files-to-block-microsoft-activision-blizzard-deal.html

FTC Files to Block Microsoft From Closing Activision Blizzard Deal - Bloomberg
https://www.bloomberg.com/news/articles/2023-06-12/ftc-will-seek-to-keep-microsoft-s-activation-deal-from-closing

FTC Seeks Injunction to Stop Microsoft From Closing Activision Deal - WSJ
https://www.wsj.com/articles/ftc-plans-to-seek-a-restraining-order-to-stop-microsoft-from-closing-activation-deal-305e130b

FTC files to block Microsoft from buying Activision Blizzard - The Verge
https://www.theverge.com/2023/6/12/23758194/ftc-microsoft-activision-blizzard-complaint-block-acquisition-call-of-duty

FTC seeks to block Microsoft's $69 billion purchase of Activision Blizzard - The Washington Post
https://www.washingtonpost.com/technology/2023/06/12/ftc-microsoft-activision-injunction/

On June 12, 2023, the FTC filed a preliminary injunction and temporary restraining order in the United States District Court for the Northern District of California to block Microsoft's acquisition of Activision Blizzard until 'July 18, 2023.' bottom. A preliminary injunction is an injunction that applies only for a limited period of time before hearing a motion for a preliminary injunction. The following PDF files are documents seeking preliminary and interim injunctions submitted by the FTC to the United States District Court for the Northern District of California.

COMPLAINT FOR A TEMPORARY RESTRAINING ORDER AND PRELIMINARY INJUNCTION PURSUANT TO SECTION 13(b) OF THE FEDERAL TRADE COMMISSION ACT
(PDF file) https://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2023/06/12/show_temp_2.pdf

The FTC claims that if Microsoft's acquisition of Activision Blizzard is successful, Microsoft may intentionally lower the price and quality of Activision Blizzard's games against competitors.

Regarding this, CNBC said, ``In other words, the FTC is concerned that Microsoft may stop selling Activision Blizzard titles on competitors' platforms such as Sony. We are concerned that other platforms may offer Activision Blizzard titles at a premium.'

Microsoft has signed a 10-year contract to provide Xbox games to Nintendo and NVIDIA to finalize the acquisition of Activision Blizzard, and is preparing to offer a similar deal to Sony's game brand PlayStation. says that there is On the other hand, the FTC is concerned about 'the possibility that Microsoft will monopolize the future titles that will appear on the Xbox.'

Microsoft signs a contract to provide Nintendo & NVIDIA with Xbox games for 10 years to complete the acquisition of Activision Blizzard - GIGAZINE

If Microsoft's acquisition of Activision Blizzard is successful, ``it will be difficult, if not impossible, to restore the status quo,'' the FTC said. The FTC also said, 'Microsoft and Activision Blizzard have stated that they can complete the acquisition at any time, so a preliminary injunction is necessary.'

Initially, Microsoft said it would complete the acquisition of Activision Blizzard by the end of June 2023. If the acquisition agreement between Microsoft and Activision Blizzard breaks down, Microsoft may have to pay a contract cancellation fee equivalent to up to $ 3 billion (about 420 billion yen) to Activision Blizzard.

Although the Japan Fair Trade Commission was also investigating Microsoft's acquisition of Activision Blizzard, it approved the acquisition as ``not hindering competition''.

Japan's Fair Trade Commission ended the review as Microsoft's acquisition of Activision Blizzard 'does not hinder competition', why? -GIGAZINE

by Prachatai

In addition, the European Commission, the European Union's policy enforcement agency, was also conducting its own investigation into Microsoft's acquisition of Activision Blizzard, but ``Microsoft's acquisition of Activision Blizzard is a way for gamers to play games on their own computers and consoles. Approved the acquisition plan as 'not hindering competition in the streaming cloud gaming market.'

EU conditionally approves Microsoft's acquisition of Activision Blizzard - GIGAZINE