Block To Microsoft

US moves to block Microsoft's Activision takeover

Regulators in the US have asked a judge to block Microsoft from completing its $69bn (£56bn) purchase of Call of Duty publisher Activision Blizzard.

The Call of Duty Titles

The US Federal Trade Commission (FTC) said the deal, which would be the largest in the history of the video games industry, could "substantially lessen competition" in the sector.The move comes after the UK blocked the deal over concerns it would hurt competition, but the EU approved it.

A trial in the US will begin in August.

The FTC said in a court filing that a "preliminary injunction is necessary to... prevent interim harm" while the regulator determines whether "the proposed acquisition violates US antitrust law".

Microsoft's proposed takeover of Activision 

has split global regulators, and in order for the deal to go through the parties need approval from regulatory bodies in the UK, the EU and the US.The European Commission has approved the acquisition, saying that Microsoft's offer of 10-year free licensing deals - which promise European consumers and cloud game streaming services access to Activision's PC and console games - mean there would be fair competition in the market.

Microsoft believes the future lies in players having subscriptions to libraries and streaming games through "cloud gaming", rather than making one-off purchases - which is the main way of accessing games at the moment.

Source: BBC