The planned mega takeover of the video game manufacturer Activision by Microsoft is temporarily on hold. A US judge granted the US antitrust authorities’ request to temporarily suspend the business.
The US Consumer Protection Agency (FTC) has temporarily stopped Microsoft’s acquisition of video game maker Activision Blizzard. Earlier this week, the FTC applied to a federal court in San Francisco for an injunction to prevent the $69 billion deal from completing. A US judge granted the US authority’s request.
US District Judge Edward Davila said the move was necessary to maintain the status quo while the FTC’s lawsuit is pending. The FTC fears Microsoft could use the acquisition to hurt competition in “several dynamic and fast-growing gaming markets.” The US consumer protection agency had already filed a lawsuit against the takeover in December because of the feared distortion of competition.
British authorities are also opposed to the takeover
The planned takeover has also been criticized outside of the USA: The British competition authority CMA said in April that there were fears that the merger would lead to “less innovation and less choice for British players” in the cloud gaming sector.
The EU Commission, on the other hand, approved the takeover of the developer of well-known games such as “Call of Duty” and “World of Warcraft” in mid-May, subject to conditions.
New group would be third largest video game company
A hearing on the lawsuit in the United States is scheduled for next week. “We welcome the opportunity to present our case in court,” Microsoft executive Brad Smith told US media.
The acquisition will create the world’s third largest video game company. Microsoft’s main presence in the video game market is represented by its Xbox console.