US FTC Seeks Interim Restraining Order To Stop Microsoft Activision Blizzard Acquisition Deal

The US FTC (Federal Trade Commission) is trying to prevent any action from Microsoft in the hotly-contested acquisition of Activision Blizzard. It appears the FTC is concerned that Microsoft will push forth regardless of the legal hurdles and acquire the massively successful game developer and publisher.

Even though the FTC had already filed a legal challenge to try and block Microsoft from buying Activision Blizzard for an estimated $68.7 billion, the agency is seeking a Temporary Restraining Order (TRO) and injunction from a US federal district court.

FTC Concerned Microsoft Might Proceed With Acquisition Of Activision Blizzard

The US FTC is asking for US courts to prevent Microsoft from acquiring Activision Blizzard even while the US government's larger case on this exact matter is pending. The FTC had filed the first legal challenge to stop Microsoft's proposed Activision Blizzard acquisition back in December.

The US FTC is now seeking a TRO to try and prevent Microsoft from moving forward and closing the deal. Incidentally, the Windows OS maker has until July 18 to close most of the formalities regarding the acquisition, and the FTC is concerned that Microsoft may proceed even without FTC's blessing, states the latest complaint:

"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."

"Press reports began circulating suggesting that defendants were seriously contemplating closing the proposed acquisition despite the pending administrative litigation and the CMA orders."

Can Microsoft Ignore The US FTC And Buy Activision Blizzard?

A US judge assigned to hear the FTC's complaint will now need to decide on issuing a TRO to restrict Microsoft from closing the deal for two weeks. Furthermore, the preliminary injunction would also prevent Microsoft from closing until the result of the FTC's legal challenge.

Simply put, FTC is exploring legal ways of ensuring Microsoft doesn't buy Activision Blizzard even while there are legal challenges pending. It appears Microsoft's confidence is high.

The European Union recently granted its approval to the deal. The European Commission essentially accepted remedial measures suggested by Microsoft to ensure fair play and healthy competition.

With the EU on Microsoft's side, the company has to now fight with the US FTC and the UK CMA. Interestingly, licensing commitments made by Microsoft could potentially expand the cloud gaming market and would bring several popular PC and console game titles to the emerging market.

It is possible that the FTC's actions might just help Microsoft as they might accelerate the legal process. Activision Blizzard CEO Bobby Kotick even hinted that these developments could be viewed as a positive.