Matt Mills McKnight/Portal
Microsoft signage is seen at the company’s headquarters in Redmond, Washington, United States, on January 18, 2023.
A U.S. judge late Tuesday granted the Federal Trade Commission (FTC) request to allow Microsoft Corp. to acquire video game maker Activision Blizzard. to be temporarily blocked and a hearing scheduled for next week.
US District Judge Edward Davila has scheduled a two-day evidentiary hearing on June 22-23 in San Francisco on the FTC’s request for an injunction. Without a court order, Microsoft could have closed the $69 billion 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. The FTC requested the temporary suspension on Monday.
Davila said the injunction, issued Tuesday, was “necessary to maintain the status quo while the complaint is pending (and) to preserve this court’s ability to order effective remedies if it concludes that an injunction is in place.” is warranted and to preserve the FTC’s ability to obtain it.” an effective permanent remedy if it prevails in its pending administrative proceeding.”
Microsoft (MSFT) and Activision (ATVI) have until June 16 to present legal arguments against an injunction; The FTC is due to respond by June 20th.
Activision said Monday the FTC’s decision to seek a federal court order was “a welcome update and one that expedites the legal process,” but declined to comment Tuesday.
Microsoft said Tuesday, “The speeding up of court proceedings in the United States 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 progressing expeditiously.”
The FTC declined to comment.
Davila said the lockdown will remain in place until at least five days after the court’s decision on the request for a restraining order.
The FTC has argued that the deal would give Microsoft’s Xbox video game console exclusive access to Activision games, leaving Sony Group Corp’s Nintendo consoles and PlayStation out in the cold.
Microsoft’s bid to acquire video game maker Call of Duty was approved by the EU in May, but UK competition authorities blocked the takeover in April.
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 “Call of Duty” games to competitors like Sony for a decade.
The case reflects the tough approach taken by US President Joe Biden’s administration to antitrust enforcement.