US regulator applies to block Microsoft's $69B acquisition of Activision Blizzard

By Ovunc Kutlu

ISTANBUL (AA) - The US Federal Trade Commission (FTC) applied for a temporary restraining order and preliminary injunction seeking to block Microsoft from acquiring gaming powerhouse Activision Blizzard, according to a filing Monday.

The deal, if approved, "would continue Microsoft’s pattern of taking control of valuable gaming content," the antitrust watchdog wrote in the filing at US District Court, Northern District Of California, San Francisco Division.

"With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition—including competition on product quality, price, and innovation. This loss of competition would likely result in significant harm to consumers in multiple markets at a pivotal time for the industry," it added.

If realized, the $69 billion agreement would be the biggest acquisition in Microsoft's history and for the video game industry.

"Withholding Activision content from, or degrading Activision content on, Microsoft’s rivals’ products is reasonably likely to substantially lessen competition in the relevant markets. This lessening of competition will result in harm to consumers, including reduced consumer choice, reduced product quality, higher prices, and less innovation," the FTC said in the filing.

The UK's Competition and Markets Authority blocked the deal in April, while the European Commission approved the acquisition in May.

Activision Blizzard has popular video game franchises, including Call of Duty, Guitar Hero, Diablo and Warcraft.