A US district judge has granted the Federal Trade Commission’s request to temporarily block Microsoft’s $69bn buyout of video game maker Activision Blizzard and set a hearing next week.
Microsoft’s bid to acquire the Call of Duty video game maker has been approved by the EU but blocked by British competition authorities, while the FTC, a US authority, has argued the transaction would give Microsoft’s video game console Xbox exclusive access to Activision games, leaving Nintendo consoles and Sony’s PlayStation out in the cold.
Microsoft has said the deal would benefit gamers and gaming companies alike, and has offered to sign a legally binding consent decree with the FTC to provide Call of Duty games to rivals including Sony for a decade.
On Tuesday, Judge Edward Davila scheduled a two-day evidentiary hearing on the FTC’s request for a preliminary injunction for 22 and 23 June in San Francisco. Without a court order, Microsoft could have closed on the deal as early as Friday.
The FTC, which enforces antitrust law, asked an administrative judge to block the transaction in early December. An evidential hearing in the administrative proceeding is due to begin 2 August.
Based on the late June hearing, the federal court will decide whether a preliminary injunction – which would last during the administrative review of the case – is necessary.
Microsoft and Activision must submit legal arguments opposing a preliminary injunction by 16 June. The FTC must reply on 20 June.
Activision said on Monday that the FTC decision to seek a federal court order was “a welcome update and one that accelerates the legal process”. On Tuesday, it declined to comment.
Microsoft said on Tuesday that “accelerating the legal process in the US will ultimately bring more choice and competition to the gaming market. A temporary restraining order makes sense until we can receive a decision from the court, which is moving swiftly”. The FTC declined to comment.
With Reuters
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