US judge puts Microsoft-Activation deal on hold while it weighs FTC request

A US federal judge has blocked Microsoft’s $75bn acquisition of Activision Blizzard as the Federal Trade Commission seeks to block the transaction.

A judge in a US district court in California on Tuesday ordered a stay on the closing of the gaming industry’s biggest deal pending a “clearance hearing” scheduled for Thursday and Friday next week.

The FTC filed a lawsuit last year to block Microsoft’s biggest deal through its in-house proceedings. But on Monday it filed a complaint asking a federal court to block the transaction until proceedings – set to begin in August – determine whether the tie-up violates US antitrust laws. does or does not.

The companies have until Friday to submit a brief opposing the FTC’s request.

Microsoft said: “Expediting the legal process in the US will ultimately lead to more choice and competition in the gaming market. A temporary restraining order makes sense until we get a decision from the court, which should move quickly.” Used to be.

Activision pointed to a memo published Monday by Chief Executive Officer Bobby Kotick that said the FTC’s complaint was “a welcome update” that “speeds up the legal process.”

The FTC declined to comment on the judge’s order.

The FTC said in Monday’s filing: “With Activision’s control of its content, Microsoft will have the ability and increased incentive to prevent or reduce Activision’s content that stifles competition, including competition on product quality, price and innovation.” significantly reduces.”

The regulator has said that the complaint was due to media reports which said that the companies were considering closing the deal “immediately”.

The FTC’s position on the multibillion-dollar deal represents one of the most significant merger challenges to materialize under a Joe Biden administration. The President has appointed several progressive officials to senior antitrust roles who have taken a tough stand on anti-competitive conduct, including FTC Chairwoman Leena Khan.

Britain’s Competition and Markets Authority ordered a halt to the acquisition in April, dealing a serious blow to the deal. The regulator argued that Microsoft could make Activision’s games exclusive to its cloud gaming service.

Separately from the US and UK, the EU approved the deal last month, saying Microsoft made concessions that eased regulators’ concerns such as allowing all European consumers who are current or future Let’s buy Activision games to stream them on all cloud game streaming providers. a decade.

Additional reporting by Richard Waters and Andrew Edgecliffe-Johnson