US FTC argues Microsoft's deal to buy Activision should be blocked

FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

WASHINGTON (Reuters) -The U.S. Federal Trade Commission on Thursday argued in federal court for a preliminary injunction to temporarily block Microsoft's acquisition of videogame maker Activision Blizzard.

"If this deal is completed, the combined company ... is likely to have the ability, an incentive, to harm competition in various markets related to consoles, subscription services and the cloud (for gaming)," FTC lawyer James Weingarten said in the government's opening arguments in the first day of a five-day evidentiary hearing.