The FTC is reportedly filing an injunction against the Xbox-Activision deal

The FTC is reportedly preparing to file an injunction to block the Microsoft-Activision deal from closing before the August hearing date

The FTC is reportedly preparing to file an injunction to block the Microsoft-Activision deal from closing, a source familiar with the matter told CNBC. The injunction is intended to stop the deal before its intended July 18, 2023, closing date and ahead of the FTC’s planned evidentiary hearing in August 2023.

The report comes a few weeks after the European Union approved the acquisition, citing Microsoft’s partnerships with several platforms as satisfactory proof that the deal wouldn’t harm cloud gaming. Some of those deals include a partnership with Nvidia GeForce Now, which Microsoft announced will also include support for PC Games Pass during the Xbox Games Showcase, and a 10-year deal to provide Call of Duty on Nintendo platforms. 

It wasn’t enough for the U.K. Competition and Markets Authority, however. The CMA blocked the deal in the United Kingdom over concerns that it would give Microsoft too much influence in shaping cloud gaming and may stymie competition.

While seeking injunctions isn’t a strategy the FTC commonly employs, the commission says on its website that it sometimes files injunctions to stop a merger from proceeding until all parties can gather and present evidence – which, if CNBC’s source is correct, is exactly what the FTC will do in this situation.

Written by Josh Broadwell on behalf of GLHF