Investing.com -- The Federal Trade Commission on Monday filed a preliminary injunction and temporary restraining to block Microsoft’s $68.7 billion acquisition of Activision Blizzard (NASDAQ:ATVI) amid anti-trust concerns.
“A preliminary injunction is necessary to maintain the status quo and prevent interim harm to competition during the pendency of the FTC’s administrative proceeding to determine whether the Proposed Acquisition violates U.S. antitrust law,” the FTC said in a filing on Monday.
“A temporary restraining order is necessary to maintain the status quo while this Court decides whether to grant the requested preliminary injunction," it added.
The move to block the deal comes just ahead of the July 18 deadline, when Microsoft (NASDAQ:MSFT) said it intended to close the deal. If the tech giant failes to get the deal over line, it would be on the hook for $3B in breakup fees to Activision Blizzard.
The FTC alleged the acquisition would allow Microsoft to suppress competitors including Sony (NYSE:SONY) by making Activision Blizzard's top titles exclusive to Xbox gaming consoles.
"With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition—including competition on product quality, price, and innovation," the FTC said in a court filing.
Microsoft and Activision Blizzard were up marginally in after-hours trade.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.