US injunction temporarily blocks Microsoft’s Activision Blizzard acquisition leading up to court battle
Objection!
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The US Federal Trade Commission (FTC) has placed a temporary block onMicrosoft’s acquisition of ActivisionBlizzard.
The injunction prevents Microsoft from making any kind of bid to acquire Activision Blizzard until the matter is settled in court. Given the FTC’s concerns that the acquisitionbreaches anti-trust laws, the imminent court case will be a pivotal moment for Microsoft (via CNBC)
Microsoft’s acquisition plans have received global scrutiny, beingapproved in China,blocked in the UK, and onlyapproved in the EUwith significant caveats.
The acquisition, valued at $68.7 billion, will have significant ramifications for the gaming industry if it goes ahead. As such, the case is to be bought before an internal administrative law judge in the US. The case is set to be heard in August.
Should Microsoft fail to convince the court that its acquisition isn’t in breach of US anti-monopoly laws, the tech giant would still have some recourse and would be able to appeal the decision in federal court, in a similar fashion to itsongoing appeal against the UK government’s decisionto prevent the acquisition.
Both the EU and the UK’s regulatory bodies identified significant concerns when it came to Microsoft’s share of the cloud gaming market, currently estimated at somewhere around 65% according to the UK’s Competition and Markets Authority.
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ThoughXbox Game Passundoubtedly offers great value for money, it would be concerning if Microsoft was able to establish a monopoly in the cloud gaming space. ThoughGoogleStadia and On Live both went the way of the dodo, streaming technology has become sufficiently reliable in recent years as to allow cloud gaming to have a mass market appeal that it’s never previously enjoyed.
The list ofbest Xbox Game Pass gamesis intimidatingly long for the likes ofAmazon LunaandPlayStation Plus, the latter of which offers its Classics Catalogue to subscribers via the cloud. Hopefully, FTC scrutiny will ensure that, if the acquisition does take place, it’ll occur in a manner that keeps the cloud gaming market open and competitive, rather than allowing it to become Microsoft’s personal fiefdom.
An editor and freelance journalist, Cat Bussell has been writing about video games for more than four years and, frankly, she’s developed a taste for it. As seen on TechRadar, Technopedia, The Gamer, Wargamer, and SUPERJUMP, Cat’s reviews, features, and guides are lovingly curated for your reading pleasure.
A Cambridge graduate, recovering bartender, and Cloud Strife enjoyer, Cat’s foremost mission is to bring you the best coverage she can, whether that’s through helpful guides, even-handed reviews, or thought-provoking features. She’s interviewed indie darlings, triple-A greats, and legendary voice actors, all to help you get closer to the action. When she’s not writing, Cat can be found sticking her neck into a fresh RPG or running yet another Dungeons & Dragons game.
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