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FTC Files Injunction to Block Microsoft’s Activision Deal: What to Know

The deal, if approved, would turn Xbox maker Microsoft into one of the top three video game publishers.

Microsoft continues its fight to complete the $69 billion acquisition of game publisher Activision Blizzard, but the US Federal Trade Commission has added another obstacle in an attempt to block the deal. 

The FTC filed an injunction Monday to stop Microsoft’s purchase of Activision before the July 18 deadline, as reported earlier by CNBC. This comes several months after the commission filed a lawsuit against the tech giant over the acquisition saying the deal would «enable Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing subscription and cloud-gaming business.»

Microsoft first announced its plans to acquire Activision Blizzard in January 2022. Closing the deal would turn Xbox maker Microsoft into one of the top three video game publishers, right behind rival Sony. Activision Blizzard is one of the largest third-party publishers, with some major franchises that would give a much-needed boost to Microsoft’s games catalog, including Call of Duty, Candy Crush and Overwatch.

Although Microsoft has won a few merger-related battles, it still has hurdles to clear. 

Who’s left to approve the deal? 

Microsoft has yet to receive approval from regulators in the US. The FTC’s lawsuit from December and the injunction on Monday hamper the deal from receiving approval.

The injunction is sought to «maintain the status quo and prevent interim harm to competition during the pendency of the FTC’s administrative proceeding to determine whether the Proposed Acquisition violates US antitrust law,» the filing says.

The FTC’s suit «should accelerate the decision-making process,» Microsoft vice chair and president Brad Smith tweeted late Monday. «This benefits everyone. We always prefer constructive and amicable paths with governments but have confidence in our case and look forward to presenting it,» he added.

A hearing is set for Aug. 2 regarding the lawsuit. 

The UK is another major country that has yet to sign off on the deal. In April, the UK’s Competition and Markets Authority blocked the $69 billion deal, saying it would result in higher prices and fewer choices for gamers. Microsoft’s appeal to the ruling says the CMA «made fundamental errors in its calculation and assessment of market share data for cloud gaming services by failing to take account of constraints from native gaming (whereby gamers access games installed on their devices through a digital download or physical disc).»

Microsoft has continued to deny that the deal would hamper competition within the video game industry and continues to negotiate with regulators to get approval.   

What does this deal mean for gamers? 

For Xbox Game Pass subscribers, the deal means Activision Blizzard’s catalog of games will be incorporated into the service, likely similar to how Bethesda games were when Microsoft acquired that company in 2020

How gamers who don’t have an Xbox, and instead use a Sony PlayStation or Nintendo Switch console, will be affected is less clear. Critics of the deal are concerned that Microsoft could make future games developed by Activision unavailable on rival consoles. (Microsoft did just this for games developed by Bethesda.) This is especially concerning for a major Activision title like Call of Duty. 

Microsoft already agreed to a 10-year deal with Nintendo to bring Call of Duty games to its consoles, but Sony reportedly rejected a similar agreement. Sony remains against the deal and continues to submit filings to regulators about its concerns over the acquisition.  

What is cloud gaming?

Cloud gaming is the technology to stream video games remotely to a device such as a phone, tablet or smart TV. While the technology has been around for more than a decade, it’s only in recent years that it’s really taken off, thanks in part to it being an added feature for Microsoft’s Xbox Game Pass and Sony’s PS Plus

Other companies developed their own cloud gaming services, such as Amazon’s Luna and GeForce Now. The former made an agreement with Microsoft in February to bring more of its games to the service over the next 10 years. 

Technologies

You’ll Soon Be Able to Buy Walmart Products Through ChatGPT

OpenAI’s chatbot already connects to Etsy and Shopify. Now you can buy bananas too.

OpenAI and Walmart will soon offer shopping via AI through ChatGPT, the retail giant said in a press release on Tuesday.

While using ChatGPT’s Instant Checkout feature, customers can buy groceries, electronics or other essentials within the chatbot interface. 

Walmart has its own AI assistant in its app named Sparky. With Sparky, customers can ask questions about products and get summaries of reviews to find the best item. 


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«For many years now, e-commerce shopping experiences have consisted of a search bar and a long list of item responses. That is about to change,» Walmart CEO Doug McMillon said in a statement. «There is a native AI experience coming that is multi-media, personalized and contextual. We are running towards that more enjoyable and convenient future with Sparky and through partnerships including this important step with OpenAI.»

When asked for comment, Walmart referred to its press release. Walmart also said it wouldn’t discuss the financial terms of the agreement at this time.

«We’re excited to partner with Walmart to make everyday purchases a little simpler. It’s just one way AI will help people every day under our work together,» OpenAI CEO Sam Altman said in a press release.

OpenAI referred to Walmart’s press release when asked for comment. 

The latest deal with Walmart comes as OpenAI tries to make ChatGPT an all-in-one shopping experience. AI chatbots are increasingly being used as vehicles for online shopping. They can synthesize reviews from across the internet and give people direct answers to shopping questions. Already, ChatGPT connects with Etsy and Shopify with its Instant Checkout feature, allowing people to buy directly. OpenAI also added more shopping features in ChatGPT Search earlier this year

(Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)  

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Technologies

OpenAI Will Loosen ChatGPT’s Mental Health Guardrails and Allow Erotica for Adult Users

Sam Altman said the company will ease limits for adults after rolling out age verification.

ChatGPT is treading cautiously right now, but the chatbot may become more risqué by the end of the year.

In recent weeks, the generative AI chatbot has been operating under somewhat stringent limitations, as OpenAI tried to address concerns that it was not handling sensitive mental health issues well. But CEO Sam Altman said in a post on X Tuesday that the company would ease some of those restrictions because it’s «been able to mitigate the serious mental health issues.»

Though Altman didn’t elaborate on what tools are being used to address the problem, OpenAI recently announced new parental controls in ChatGPT. 

CNET reached out to OpenAI for details, but the company did not immediately respond to a request for comment. (Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

Other changes are also expected. Altman said the company could allow «erotica» for verified adult users as it implements an «age-gating» system, or age-restricted content, in December. The mature content is part of the company’s «treat adult users like adults» principle, Altman said. 

Altman’s post also announced a new version of ChatGPT in the next few weeks, with a personality that behaves more like the company’s GPT-4o model. Chatbot users had complained after the company replaced 4o with the impersonal GPT-5 earlier this year, saying the new version lacked the engaging and fun personality of previous chatbot models. 

«If you want your ChatGPT to respond in a very human-like way, or use a ton of emoji, or act like a friend, ChatGPT should do it (but only if you want it, not because we are usage-maxxing),» Altman wrote.


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After OpenAI was sued by parents who alleged ChatGPT contributed to their teen son’s suicide, the company imposed an array of new restrictions and changes, including parental controls, alerts for risky behavior and a teen-friendly version of the chatbot. In the summer, OpenAI implemented break reminders that encourage people to occasionally stop chatting with the bot. 

On Tuesday, the company also announced the creation of a council of experts on AI and well-being, including some with expertise in psychology and human behavior. 

This comes as lawmakers and regulators are ringing the alarm on the risks AI tools pose to people, especially children. On Monday, California Governor Gavin Newsom signed new restrictions on AI companion chatbots into law. Last month, the Federal Trade Commission launched an investigation into several AI companies, including OpenAI. 

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Technologies

Today’s NYT Strands Hints, Answers and Help for Oct. 15 #591

Here are hints — and the answers — for the NYT Strands puzzle for Oct. 15, No. 591.

Looking for the most recent Strands answer? Click here for our daily Strands hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections and Connections: Sports Edition puzzles.


Today’s NYT Strands puzzle is a fun one, once you understand the theme. Some of the answers are a bit tough to unscramble, so if you need hints and answers, read on.

I go into depth about the rules for Strands in this story. 

If you’re looking for today’s Wordle, Connections and Mini Crossword answers, you can visit CNET’s NYT puzzle hints page.

Read more: NYT Connections Turns 1: These Are the 5 Toughest Puzzles So Far

Hint for today’s Strands puzzle

Today’s Strands theme is: Going up?

If that doesn’t help you, here’s a clue: Not an escalator, but…

Clue words to unlock in-game hints

Your goal is to find hidden words that fit the puzzle’s theme. If you’re stuck, find any words you can. Every time you find three words of four letters or more, Strands will reveal one of the theme words. These are the words I used to get those hints but any words of four or more letters that you find will work:

  • ROTATE, LOBE, NOPE, RATS, STAR, SAME, LOSE, VOTE, BUTTE, SAMS, BAMS

Answers for today’s Strands puzzle

These are the answers that tie into the theme. The goal of the puzzle is to find them all, including the spangram, a theme word that reaches from one side of the puzzle to the other. When you have all of them (I originally thought there were always eight but learned that the number can vary), every letter on the board will be used. Here are the nonspangram answers:

  • ALARM, OPEN, CLOSE, LOBBY, GROUND, BASEMENT

Today’s Strands spangram

Today’s Strands spangram is ELEVATORBUTTONS. To find it, look for the E that’s three letters to the right on the bottom row, and wind straight up, and then straight down.

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