A US judge halts Microsoft’s Activision acquisition. A U.S. judge temporarily blocked Microsoft Corp.’s (MSFT.O) acquisition of Activision Blizzard (ATVI.O) late Tuesday.
Judge Edward Davila set a June 22–23 evidentiary hearing in San Francisco for the FTC’s preliminary injunction request. Microsoft might have completed the $69 billion merger Friday without judicial approval.
Antitrust regulator the FTC asked an administrative judge to stop the merger in early December. The administrative proceeding’s evidence hearing begins Aug. 2.
After the late-June hearing, the federal court will decide if an administrative review requires a preliminary injunction. The FTC requested the temporary block Monday.
Davila said Tuesday’s 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 argue 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 order 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 declared Tuesday. A temporary restraining order makes sense until the court makes a swift determination.” FTC said nothing.
Davila said the closing ban would remain five days after the preliminary injunction.
The FTC alleges the purchase would give Microsoft’s Xbox exclusive Activision titles, barring Nintendo (7974.T) and Sony Group Corp.’s (6758.T) PlayStation.
British competition authorities blocked Microsoft’s acquisition of the “Call of Duty” originator in April, but the EU approved it in May.
Microsoft wants to enter a 10-year FTC consent agreement to sell “Call of Duty” games to Sony and others. It illustrates President Joe Biden’s vigorous antitrust enforcement.