A US regulator has succeeded in trying to temporarily block Microsoft’s £55 billion acquisition of video game maker Activision Blizzard, which could not close within a week. This.
The Federal Trade Commission (FTC), which opposes competition-based binding, went to court last night for a preliminary injunction.
A two-day hearing, in which all parties will only bring their cases on the basis of the injunction, is now scheduled for next week in San Francisco.
The ruling is the latest major milestone on a thorny legal road for the companies.
Their takeover plan would give Microsoft control of key game content like Call of Duty, Overwatch, and World of Warcraft.
the agreement is blocked by UK regulators.
Companies appeal plan The Competition and Markets Authority (CMA) determined that it would stifle competition in the cloud gaming market.
The EU allows the deal but the FTC has similar concerns with the UK watchdog and moves to secure the ban as the pair could potentially close the deal as early as Friday.
Closing the deal does not prevent the deal from being canceled at a later date, should UK and US regulators win the day.
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U.S. District Judge Edward Davila said the temporary restraining order, granted to the FTC, was “necessary to maintain the status quo while the complaint is pending (and) protect this court’s ability to order relief.” effective in the case of a warranted preliminary order determination and preserves the FTC’s ability to obtain an effective permanent remedy in the event that the FTC prevails in the pending administrative proceeding.”
Microsoft said it welcomed the FTC’s temporary ban because it would speed up the legal process.
It is argued that this agreement will benefit gamers as well as game companies, and proposes to sign a legally binding ordinance with the FTC to provide games.” Call of Duty” for competitors including Sony and Nintendo for a decade.