The regulator said the deal, which could close within the next few days, could "substantially lessen competition" in the video games industry.
Microsoft first announced its multi-billion deal to buy Activision in January 2022, which would see the company acquire hit titles such as Call of Duty and Candy Crush. The deal has been hailed as the “biggest takeover in tech history” and is already the largest acquisition in the history of the video game industry, at least in theory at this stage.
The news follows moves from the UK's competition authority, which blocked the sale in April, as it would “alter the future of the fast-growing cloud gaming market”, fearing Microsoft would make the Activision games exclusive to its existing cloud gaming platform, Xbox Game Pass, cutting off distribution to other key players in the space.
The UK decision has been appealed by Microsoft and a final decision is pending.
However, the deal has been approved...