A federal judge has intervened in Microsoft’s plan to purchase video game company Activision Blizzard for a whopping $69 billion. The judge’s decision on Tuesday grants more time for an antitrust review of the deal, as requested by the Federal Trade Commission.
US District Judge Jacqueline Scott Corley, presiding in San Francisco, supported the commission’s plea for a temporary restraining order, effectively halting Microsoft from finalizing the acquisition. The commission had filed for the order and an injunction on Monday to prevent Microsoft from taking over the California-based company responsible for popular games like Call of Duty, World of Warcraft, and Candy Crush Saga.
Microsoft, renowned for its Xbox gaming system, has been seeking global approval for the merger for several months. Although many countries have given their consent, regulators from two significant economies—the US and the UK—have taken measures to block the deal, citing concerns about potential competition suppression in the video game market.
Judge Corley stated that the temporary block is necessary to maintain the current state of affairs while the Federal Trade Commission’s legal cases against the merger remain pending. The threshold for issuing a restraining order promptly is lower than that for issuing a preliminary injunction to halt the deal. A hearing regarding the commission’s request for an injunction has been scheduled for June 22.
Last year, the trade commission had already taken Microsoft to court in an attempt to block the merger. However, that case was brought before an in-house judge at the US agency, with the trial set to commence on August 2. This week, the commission decided to bring the case to a federal court due to concerns that Microsoft might attempt to finalize the deal before the trial starts, making it challenging or even impossible to reverse the course of action if the acquisition is deemed illegal.
In response to the judge’s decision, Microsoft issued a written statement on Tuesday evening, asserting that expediting the legal process in the US would ultimately enhance choice and competition within the gaming market.
“Given the circumstances, a temporary restraining order is sensible until we can receive a decision from the Court, which is moving swiftly,” the company declared.
