A US federal court has issued an order temporarily barring Microsoft from buying Activision Blizzard for $68.7 billion after the Federal Trade Commission (FTC) filed a complaint on Monday seeking to obtain the restraining order and an injunction. If the courts also grant the injunction, the FTC may file its case before the settlement can be reached.
With the restriction, Microsoft and Activision cannot complete the negotiation until “after 11:59 pm (Pacific time) on the fifth business day after the court’s decision on the FTC’s preliminary injunction” or on a date set by the court. An evidentiary hearing on the injunction has also been scheduled for June 22nd and 23rd, so it is unlikely that both companies will close the transaction this month.
“Accelerating the legal process in the US will ultimately bring more choice and competition to the gaming market,” Microsoft spokesman David Cuddy said in a statement to the The Verge. “A temporary restraining order makes sense until we can receive a ruling from the court, which is moving quickly.”
Microsoft announced plans to purchase Activision Blizzard in January 2022. Since then, it has been fighting several battles with regulators around the world to prove that the purchase does not harm competition. Although the European Union approved the deal in May, the UK blocked the acquisition in April (leading Microsoft to appeal), and the FTC sued the company in December in another attempt to block the purchase.
