Shulou(Shulou.com)11/24 Report--

CTOnews.com, June 22 (Xinhua)-- the Federal Trade Commission (FTC) will file a preliminary injunction in federal court on Thursday to temporarily prevent Microsoft from buying Activision Blizzard (Activision Blizzard) for $69 billion (CTOnews.com Note: about 495.42 billion yuan). They think that trading should be stopped before the government makes a ruling.

Microsoft has said that a "temporary block" could derail the deal, but courts usually do not consider such realistic consequences. If the court suspends the deal, Microsoft and Activision Blizzard will have to postpone their agreement, which was scheduled to expire on July 18.

At a five-day hearing scheduled by a federal judge in San Francisco, antitrust law enforcement agencies will argue that it needs to get Microsoft and Activision Blizzard to suspend the deal until a federal court ruling on the merger, because the agency's internal court has not yet ruled on whether the deal harms competition in the gaming industry.

FTC fears that without federal court action, the merger of the two companies "could change Activision Blizzard's operations and business plans" and could lead to Microsoft's access to sensitive corporate information.

It is reported that the administrative hearing within FTC is scheduled to begin on August 2, and the settlement of the FTC lawsuit in the United States is one of the key antitrust battles for Microsoft and Activision Blizzard to complete the deal worldwide.

FTC believes the deal will be the largest ever by Microsoft and the largest in the history of the gaming business. It will give Microsoft "the ability and motivation to weaken or reduce Activision Blizzard content", thereby substantially reducing competition.

In addition, FTC asked its internal administrative court in December to block the deal and said the merger would allow Microsoft's Xbox console to monopolize Activision Blizzard games, while Nintendo and Sony would be excluded.

Microsoft has said the deal will benefit both gamers and game companies and has signed a legally binding consent form to FTC promising to provide call of Duty games to competitors, including Sony, within the next decade.

The hearing will begin on June 22 and last until June 29. Executives such as Satya Satya Nadella, chief executive of Microsoft, and Bobby Kotick, chief executive of Activision Blizzard, will testify as witnesses.

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