The Federal Trade Commission is anticipated to dam Microsoft’s $69 billion acquisition of video gaming giant Activision Blizzard with a preliminary injunction.
The FTC is anticipated to file for the temporary order on Monday, in line with MLex, a news service that tracks regulatory developments.
The federal regulator has two closed-door meetings scheduled on Monday to debate the move, in line with the report, which was cited earlier Monday by Looking for Alpha.
An injunction would halt the deal, which has a July 18 termination deadline. Until then, either party can walk away, extend or renegotiate the terms of the sale, the outlet reported.
It’s not the primary time the FTC has attempted to dam the deal.
In December, the agency filed a criticism with an FTC Administrative Law Judge, citing antitrust concerns and stifled competition across the video-game sector if the $95-per-share deal accomplished.
A hearing for the case within the FTC’s administrative court is scheduled for August.
A representative for the FTC didn’t immediately reply to The Post’s request for comment. Reps for Microsoft and Activision also didn’t immediately comment.
Meanwhile, UK regulators — notoriously the hardest — have also moved to quash the mega merger over fears that it might hurt competition.
Microsoft has made concessions to get the UK’s Competition and Markets Authority (CMA) on its side.
The Xbox owner has agreed to present firms like Ubitus and Boosteroid access to Activision games on their cloud-based video game streaming services for 10 years.
It also signed a take care of Nintendo, which presently doesn’t have access to “Call of Duty,” though it wasn’t enough to get the CMA to OK the merger.
Microsoft is about to appeal the CMA’s decision in a trial set for July 24.
Despite the roadblocks, European Union regulators approved Microsoft’s $69 billion bid to amass Activision Blizzard last month under an agreement that Microsoft would ensure rival firms would proceed to have access to Activision-developed games, including the ultra-popular “Call of Duty,” “World of Warcraft” and “Candy Crush.”
The modified agreement also ensures that Microsoft will bring all Activision games — “current and future” — to any cloud game streaming service, the European Commission (EC) — EU’s executive arm — said in an announcement.
“Ultimately, the commitments will unlock significant advantages for competition and consumers, by bringing Activision’s games to latest platforms, including smaller EU players, and to more devices than before,” the commission said.
Should the acquisition be accomplished, it might position Microsoft because the third-largest gaming company on this planet by revenue, topped only by Tencent and Sony, respectively, and push Apple right down to the No. 4 spot.
As of Monday afternoon, Activision Blizzard’s stock was down lower than 0.1%, while Microsoft rose 0.2%.
