A U.S. judge granted the Federal Trade Commission’s (FTC) request to impose a temporary block on Microsoft Corp’s acquisition of video game maker Activision Blizzard, setting the stage for a hearing in the following week.
U.S. District Judge Edward Davila has scheduled a two-day evidentiary hearing on June 22-23 in San Francisco to address the FTC’s request for a preliminary injunction. This move prevents Microsoft from finalising the $69 billion deal, unless a court order is obtained.
The FTC, responsible for enforcing antitrust law, initially sought to impede the transaction in early December. An evidential hearing for the administrative proceeding has been slated to commence on August 2.
The FTC has raised concerns that Microsoft’s acquisition of Activision Blizzard could grant exclusive access to Activision games to Microsoft’s Xbox console, potentially leaving Nintendo and Sony’s PlayStation consoles at a disadvantage.
While the European Union approved Microsoft’s bid to acquire Activision in May, British competition authorities blocked the takeover in April.
Microsoft has defended the deal, stating that it would bring benefits to gamers and gaming companies. In an effort to address the FTC’s concerns, Microsoft has offered to enter into a legally binding consent decree. This agreement would ensure that Activision’s popular “Call of Duty” games are made available to competitors, including Sony, for a duration of ten years.
