Activision Blizzard
The Federal Trade Commission is delaying a $69 billion deal it says is anticompetitive
employees and agencies
Wed 14 Jun 2023 03:54 BST
A US district judge has granted the Federal Trade Commission’s request to temporarily block Microsoft’s $69 billion acquisition of video game maker Activision Blizzard and scheduled a hearing next week.
Microsoft’s bid to acquire video game maker Call of Duty was approved by the EU but blocked by UK competition authorities, while the US regulator FTC argued the transaction would give Microsoft’s video game console, Xbox, exclusive access to Activision games. Consoles and Sony’s PlayStation are out in the rain.
Microsoft has said the deal would benefit gamers and gaming companies alike, and has offered to sign a legally-binding decree of consent with the FTC to offer a decade of Call of Duty games to competitors like Sony.
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Judge Edward Davila on Tuesday scheduled a two-day evidentiary hearing on the FTC’s request for a restraining order for June 22-23 in San Francisco. Without a court order, Microsoft could have closed the deal on Friday.
The FTC, which enforces antitrust laws, asked an administrative judge to block the transaction in early December. Evidence hearings in administrative proceedings are scheduled to begin on August 2nd.
Based on the hearing at the end of June, the federal court will decide whether an injunction – which would apply while the case is being reviewed by the authorities – is required.
Microsoft and Activision have until June 16 to present legal arguments against an injunction. The FTC is due to respond by June 20th.
Activision said Monday that the FTC’s decision to seek a federal court order was “a welcome update and one that expedites the legal process.” It declined to comment on Tuesday.
Microsoft said Tuesday that “speeding up court proceedings in the U.S. will ultimately bring more choice and competition to the gaming market.” An injunction makes sense until we get a decision from the court, which is moving forward swiftly.” The FTC declined comment away.
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