The US Federal Trade Commission (FTC) will seek a preliminary injunction from a federal court in San Francisco to halt Microsoft from completing its acquisition of gaming giant Activision Blizzard. CNBC reports, citing sources.
The FTC had previously filed a lawsuit aiming to block the $68.7 billion deal. This move will result in the transaction being brought before an administrative judge, and if the outcome does not favor the FTC, they can appeal it to a federal court. The case is expected to be heard by a judge in August, which is after the deadline for the deal’s completion on July 18th.
“We welcome the opportunity to present our case in federal court,” Microsoft President Brad Smith said. “We believe accelerating the legal process in the U.S will ultimately bring more choice and competition to the market.”-Microsoft’s CEO Brad Smith
In mid-May, the European Union conditionally approved the deal, with Microsoft agreeing to certain commitments to address the competition concerns that arose.