SAN FRANCISCO: A judge has granted regulators in the United States a request to temporarily block Microsoft’s 69bn dollar purchase of Activision Blizzard.
According to the BBC, the court said the temporary restraining order “is obligatory to maintain the status quo while the complaint is pending.”
The United States Federal Trade Commission said the deal could “substantially lessen competition” in the Microsoft sector.
A two-day hearing of the case is now due on June 22 in San Francisco. The deal to buy the Call of Duty publisher would be the largest in the history of the video games firm. The Federal Trade Commission said that without the court order, the deal could’ve been completed quickly by the end of this week, despite the UK blocking the takeover in April.
Microsoft and Activision now have until June 16 to submit legal arguments to oppose a preliminary injunction, and the FTC, which enforces competition law in the United States, will have to reply on June 20.
The Federal Trade Commission has argued that the deal would give Microsoft’s Xbox exclusive access to Activision’s different games, leaving Nintendo consoles and Sony’s PlayStation out in the cold.
Microsoft said the deal would support gamers and gaming companies and has offered to sign a legally binding agreement with the FTC to provide Call of Duty games to rivals, including Sony, for a decade.
The move comes after the United Kingdom blocked the deal over concerns it would hurt competition, but the European Union approved it.
Microsoft’s proposed takeover of Activision has split international regulators, and for the deal to go through, the parties need approval from regulatory bodies in the EU, the UK, and the US.
The European Commission has approved the acquisition and said that Microsoft’s company offer of ten-year free licensing deals – which promise European purchasers and cloud game streaming services access to Activision’s PC and console games – means there would be honest competition in the market.
But the UK Competition and Markets Authority (CMA) blocked the deal in April, saying it was concerned the takeover would offer decreased innovation and less choice for gamers.
Microsoft and Activision targeted the CMA’s decision and said they would appeal.
