FTC sues to prevent Microsoft’s acquisition of Activision Blizzard

The Federal Trade Commission (FTC) sued to block Microsoft’s acquisition of game developer Activision Blizzard, according to a complaint filed Monday in San Francisco federal court. 

The regulatory agency filing seeks a temporary restraining order and an injunction to stop the tech giant and maker of the Xbox game system from acquiring the developer behind popular games including “Call of Duty,” adding an additional hurdle to Microsoft’s push to take over the company for $69 billion. 

“Both a temporary restraining order and a preliminary injunction are necessary because Microsoft and Activision have represented that they may consummate the proposed acquisition at any time,” the FTC said in a complaint. 

“We welcome the opportunity to present our case in federal court,” said Brad Smith, Microsoft’s vice chairman and president, in a statement.

“We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market,” Smith added. 

The FTC last year sought to block the merger in a case brought to the agency’s in-house judge. A trial is set to begin Aug. 2 on that decision. 

The FTC’s complaint asks the court to put the order in place to block the deal from closing by Thursday. 

At the same time, the deal is facing legal challenges globally. In addition to the FTC’s challenge, a United Kingdom regulator is also seeking to block the deal, and an appeal hearing is also slated to begin in the U.K. shortly ahead of the FTC’s.