U.S. Judge Temporarily Blocks Microsoft's Acquisition of Activision Blizzard
Updated: Jan 5
U.S. Judge Grants FTC Request to Halt Microsoft's $69B Acquisition of Activision Blizzard, Hearing Date Announced.
A U.S. judge has granted the Federal Trade Commission's (FTC) request to temporarily block Microsoft's acquisition of video game maker Activision Blizzard. The ruling by U.S. District Judge Edward Davila includes a scheduled two-day evidentiary hearing on June 22-23 in San Francisco. Without a court order, the $69 billion deal could have closed as early as Friday.
Judge Davila emphasized the importance of preserving the status quo while the complaint is pending and the need to enable effective relief in case a preliminary injunction is deemed necessary. Microsoft and Activision are required to submit legal arguments opposing the preliminary injunction by June 16, with the FTC's reply due on June 20.
Both Microsoft and Activision have refrained from immediate comment, while the FTC has chosen not to respond.
The temporary restraining order will remain in effect until at least five days after the court rules on the preliminary injunction request.
The FTC, responsible for enforcing antitrust law, initially sought to block the transaction in December, claiming that it would grant Microsoft's Xbox exclusive access to Activision games, potentially leaving Nintendo consoles and Sony's PlayStation at a disadvantage.
While the European Union approved Microsoft's bid to acquire the video game maker in May, British competition authorities rejected the takeover in April. Microsoft has asserted that the deal would benefit gamers and gaming companies, offering to sign a legally binding consent decree with the FTC to ensure "Call of Duty" games are available to competitors like Sony for a decade.
The case exemplifies the robust antitrust enforcement approach pursued by the administration of U.S. President Joe Biden.
U.S. judge grants FTC's request to temporarily block Microsoft's acquisition of Activision Blizzard.
Evidentiary hearing scheduled for June 22-23.
Microsoft and Activision must submit legal arguments opposing preliminary injunction by June 16; FTC to reply by June 20.
Temporary restraining order in place until court rules on preliminary injunction.
FTC aims to prevent exclusive access to Activision games for Xbox.
Microsoft's bid approved by EU, rejected by British competition authorities.
Microsoft offers legally binding consent decree to ensure access to "Call of Duty" games for rivals.
Illustrates Biden administration's strong antitrust enforcement stance.