FTC said plans to file lawsuit to prevent Microsoft’s Activision deal from closing

The Federal Trade Commission plans to sue Microsoft on Monday to prevent the company from completing its $69 billion purchase of video game powerhouse Activision Blizzard. said.

The move was the latest regulatory challenge to Microsoft’s blockbuster deal for Activision, which has become a test case for whether behemoth tech companies can complete major acquisitions amid a backlash on corporate power.

Last year, the FTC filed a lawsuit to block Microsoft’s purchase of Activision through an internal court, arguing that it would hurt competition in several parts of the video game market. The agency is filing the separate lawsuit because, unlike the FTC’s in-house court, a federal court can issue a restraining order preventing a deal from being completed.

In April, Britain’s Competition and Markets Authority also decided to block the deal, although regulators in the European Union said it could go through.

An FTC spokesperson did not immediately respond to a request for comment.

In a statement, Microsoft president Brad Smith said the company welcomed the “opportunity to present our case in federal court.”

This is an evolving news item and will be updated.