US judge temporarily freezes Microsoft’s takeover of Activision. Late Tuesday, a U.S. judge approved the Federal Trade Commission’s (FTC) request to temporarily block Microsoft Corp.’s (MSFT.O) acquisition of Activision Blizzard (ATVI.O) and set a hearing for next week.
U.S. District Judge Edward Davila scheduled a June 22–23 evidentiary hearing in San Francisco on the FTC’s preliminary injunction request. Microsoft could have concluded the $69 billion merger Friday without a court injunction.
In early December, the FTC, which oversees antitrust law, petitioned an administrative judge to halt the acquisition. The administrative proceeding’s evidentiary hearing begins Aug. 2.
The federal court will decide if a preliminary injunction is needed during the administrative review after the late-June hearing. The FTC requested the temporary block on Monday.
Davila said the Tuesday temporary restraining order “is necessary to maintain the status quo while the complaint is pending (and) preserve this court’s ability to order effective relief in the event it determines a preliminary injunction is warranted and preserve the FTC’s ability to obtain an effective permanent remedy if it prevails in its pending administrative proceeding.”
Microsoft and Activision must submit legal reasons against a preliminary injunction by June 16; the FTC must respond by June 20.
Activision, which said Monday the FTC’s request for a federal court injunction was “a welcome update and one that accelerates the legal process,” declined to comment Tuesday.
“Accelerating the U.S. legal process will ultimately bring more choice and competition to the gaming market,” Microsoft stated Tuesday. Until the court reaches a quick decision, a temporary restraining order makes sense.” FTC said nothing.
Davila said the closing ban would last at least five days after the preliminary injunction ruling.
The FTC claims the purchase would give Microsoft’s Xbox exclusive access to Activision titles, excluding Nintendo (7974.T) and Sony Group Corp.’s (6758.T) PlayStation.
In May, the EU authorized Microsoft’s acquisition of “Call of Duty” video game creator, while British competition authorities vetoed it in April.
Microsoft has proposed to sign a 10-year consent agreement with the FTC to provide “Call of Duty” games to rivals like Sony.
The case shows President Joe Biden’s aggressive antitrust enforcement.
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