An American judge has temporarily blocked the purchase of Activision Blizzard by Microsoft, an operation valued at 68.7 billion dollars, about 60.3 billion euros. The judge thus responds to the Federal Trade Commission (FTC), which fears that the purchase will lead to a monopoly in the video game sector.
Edward Davila, the person responsible for the decision, has set a hearing for June 22 and 23 in San Francisco. Without a court order, Microsoft could have closed the operation this Friday, Now Microsoft and Activision Blizzard have until June 16 to present their legal arguments against the preliminary injunction. The FTC must do so by June 20.
The temporary blocking allows a status quo to be maintained until the FTC rules, the judge’s argument read. The entity feared that Microsoft would try to close the deal already, which would make it “difficult, if not impossible” to reverse the purchase if it were later found to be illegal.
The companies were already discounting the decision, after being announced by the local media. Both have ensured that judicial interference is not negative and that it can speed up the purchase process. According to the FTC, the purchase will allow Microsoft to continue to take control of high-value video games. “By controlling Activision, it could and would have an incentive to restrict content or reduce its quality as a way to weaken competition, including in terms of quality, price and innovation.”
Between them they would control sagas like Call of Duty, World of Warcraft, Candy Crush and Overwatch. Regulators fear that Microsoft will limit the offer to its Xbox consoles.
The operation, which was announced at the beginning of 2022, has also run into problems in the United Kingdom, where the regulator has questioned whether competition is guaranteed in the online gaming sector. The companies defend the opposite, that the merger would give more opportunities for choice in the market and would benefit users.
