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US sues to block Xbox takeover of Call of Duty developer Activision Blizzard
US sues to block Xbox takeover of Call of Duty developer Activision Blizzard
The US Federal Trade Commission has sued to stop Microsoft buying Call of Duty developer Activision Blizzard. It is just the latest problem for the deal, which has already been blocked by UK regulators. If completed, it will become one of the largest takeovers ever – but has faced scrutiny from regulators around the world, who argue that it might cause problems for the gaming market. The FTC's Monday filing in a federal court in San Francisco seeks a restraining order and injunction to stop Microsoft's $69 billion purchase of the California gaming company behind hit franchises such as Call of Duty and World of Warcraft. Microsoft, maker of the Xbox game system, has been struggling to win worldwide approval for the deal with just over a month before the deadline to close it, according to the contract it signed with Activision. “We welcome the opportunity to present our case in federal court," said a statement Monday from Brad Smith, Microsoft's vice chair and president. "We believe accelerating the legal process in the U.S will ultimately bring more choice and competition to the market.” The FTC already took Microsoft to court to block the merger, but that was before the U.S. agency's in-house judge in a trial set to start on Aug. 2. That administrative process doesn't preclude the parties from closing the deal. The contract between Microsoft and Activision required the deal to close by July 18, but the FTC's latest action seeks to stop that from happening. “Microsoft and Activision Blizzard have represented in the past that they cannot close their deal due to antitrust reviews of the transaction in other jurisdictions," the FTC said in a statement Monday. "But Microsoft and Activision have not provided assurances that they will maintain that position. In light of that, and public reporting that Microsoft and Activision Blizzard are considering closing their deal imminently, we have filed a request for a temporary restraining order to prevent them from closing while review continues.” Microsoft's other main obstacle is in the United Kingdom, where antitrust regulators have also taken action to block the acquisition. The all-cash deal announced in January 2022 has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision's hit franchises and give it an unfair boost in the emerging business of cloud-based game subscriptions. It could be the priciest tech industry merger in history. Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system. Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead. European regulators representing the 27-nation bloc approved the deal last month on condition that Microsoft make some promises meant to boost competition in the cloud-based gaming market. A number of other countries, including China, Japan, Brazil and South Korea, have also approved it. But the blockbuster deal has remained in jeopardy because of the surprise April decision by the U.K.’s Competition and Markets Authority and the ongoing case in the U.S. Microsoft in late May filed an appeal of the British regulator's decision and has also voiced strong public opposition directed at top government officials. U.S.-based consumer advocacy group Public Citizen, an opponent of the deal, welcomed the FTC's move Monday. “Although the agency has already used its authority to block the merger through administrative proceedings, Microsoft is pushing to culminate the purchase of Activision before the agency can finish its process," said a statement from Public Citizen's competition policy advocate Matt Kent. ""By filing in federal court to enjoin the transaction, the FTC is showing that it won’t back down in the face of Microsoft’s escalatory tactics.” Additional reporting by Associated Press
2023-06-14 01:55
NATO's support to Ukraine makes a difference on battlefield -Stoltenberg
NATO's support to Ukraine makes a difference on battlefield -Stoltenberg
BRUSSELS NATO's support for Ukraine is making a difference on the battlefield, said NATO Secretary-General Jens Stoltenberg on
2023-06-15 16:55
Letter reviewed by the AP undercuts Mississippi candidate's accusation against lieutenant governor
Letter reviewed by the AP undercuts Mississippi candidate's accusation against lieutenant governor
The Republican lieutenant governor's race in Mississippi has turned nasty with primary elections just under three weeks away
2023-07-20 01:26
Born in New York's Bronx before dominating the globe, hip hop turns 50
Born in New York's Bronx before dominating the globe, hip hop turns 50
A genre, a culture and a lifestyle all at once: hip hop has traveled from the block party to the billionaire's club, soundtracked protest and celebration, and asserted seismic...
2023-08-08 09:39
Alix Earle criticized for overordering and wasting huge pile of food: ‘You could feed everyone in Hamptons’
Alix Earle criticized for overordering and wasting huge pile of food: ‘You could feed everyone in Hamptons’
Alix Earle claimed that she had ordered enough food for '45 people' while showing off her massive takeout order
2023-06-27 15:34
Taylor Swift attends 'Eras Tour' concert movie premiere in Los Angeles
Taylor Swift attends 'Eras Tour' concert movie premiere in Los Angeles
Taylor Swift filled a "blank space" on the red carpet of the "Taylor Swift: The Eras Tour Concert Film" premiere in Los Angeles on Wednesday.
2023-10-12 09:18
How to Get Pink Diamond John Stockton in NBA 2K23
How to Get Pink Diamond John Stockton in NBA 2K23
Here's a breakdown of how to complete the agenda to get Pink Diamond John Stockton in NBA 2K23 MyTeam.
1970-01-01 08:00
South Sudan president says he will be a candidate in long-delayed elections set for 2024
South Sudan president says he will be a candidate in long-delayed elections set for 2024
President Salva Kiir of South Sudan says his country’s long-delayed elections will take place in 2024 and that he will be on the ballot
2023-07-05 18:43
Nick Cannon reveals which of his kids he spends the most time with
Nick Cannon reveals which of his kids he spends the most time with
Nick Cannon reveals which of his kids he spends the most time with
2023-05-25 06:12
Colts officially come to terms with No. 4 overall pick Anthony Richardson
Colts officially come to terms with No. 4 overall pick Anthony Richardson
Colts officially come to terms with No. 4 overall pick Anthony Richardson
2023-07-25 06:15
xQc claims 'someone paid someone' to get his IG account banned as streamer urges Meta to restore it, fans say 'help juicer'
xQc claims 'someone paid someone' to get his IG account banned as streamer urges Meta to restore it, fans say 'help juicer'
xQc faced an unexpected ban on his Instagram account, causing a stir online
2023-10-11 17:56
Gas-electric hybrid vehicles get a boost in the US from Ford, others
Gas-electric hybrid vehicles get a boost in the US from Ford, others
By Paul Lienert and Ben Klayman DETROIT Hybrid gasoline-electric vehicles may not be dying as fast as some
2023-08-24 02:08