In a move aimed at impeding Microsoft Corp.’s MSFT acquisition of Activision Blizzard Inc., ATVI the Federal Trade Commission (FTC) plans to file a lawsuit in federal court on Monday.
This news, which was first reported by Bloomberg, presents a challenge for Microsoft, as the regulatory body seeks a court order to halt the transaction until the agency’s in-house court can deliberate on the deal.
The trial in the FTC’s court system is scheduled to commence in August.
In dialogue with CNBC, Microsoft’s Vice Chair and President Brad Smith commented on the matter: “We welcome the opportunity to present our case in federal court.
“We believe accelerating the legal process in the U.S will ultimately bring more choice and competition to the market.”
Legal proceedings were initiated by the FTC against the acquisition back in December, when a lawsuit was filed within its in-house court system. This initial action did not prevent Microsoft from proceeding with the deal. Consequently, the FTC is now seeking intervention from a federal judge to halt the transaction.
The trial in the FTC’s court is scheduled to commence on Aug. 2, but a final verdict is not anticipated until the end of the year.
It’s worth noting the merger agreement between Microsoft and Activision Blizzard is set to expire on July 18. While there is an option to extend the agreement, Activision Blizzard retains the right to withdraw from the deal, albeit with a $3-billion break-up fee.
Image credits: Anton Vierietin and FellowNeko on Shutterstock.
Image and article originally from www.benzinga.com. Read the original article here.