US Judge Temporarily Blocks Microsoft Acquisition Of Activision

(RTTNews) - A US judge has granted the Federal Trade Commission's request to temporarily block Microsoft Corp's (MSFT) acquisition of video game maker Activision Blizzard.

US District Judge Edward Davila scheduled a two-day evidentiary hearing on the FTC's request for a preliminary injunction for June 22-23 in San Francisco.

The FTC requested for a permanent injunction and temporary restraining order to prevent Microsoft from completing the acquisition until the commission concludes its own legal proceedings against the merger.

In its initial lawsuit filed in December 2022, the FTC argued that the acquisition would enable Microsoft to suppress competition in the gaming industry, particularly with its Xbox gaming consoles and growing subscription content and cloud-gaming business.

FTC claims that if the acquisition goes through, Microsoft would gain control over Activision's content, allowing them to potentially withhold or degrade it, leading to reduced competition in terms of product quality, price, and innovation.