Microsoft-Activision: US temporarily blocks $69 billion deal

Photograph for breaking news

The US government's request for a temporary halt to Microsoft's acquisition of Activision Blizzard for $69 billion (£56 billion) has been granted by a judge.

The temporary restraining order is "required to maintain the status quo while the complaint is pending," the court states.

The agreement may "substantially lessen competition" in the market, according to the US Federal Trade Commission (FTC).

Now, on June 22, a two-day hearing is scheduled.

The largest deal in the history of the video game industry would be the one to purchase the Call of Duty publisher.

The decision was made after the UK blocked the agreement because it feared it would harm competition, but the EU approved it.

Regulators around the world disagree on Microsoft's proposed acquisition of Activision, and for the transaction to close, the parties need the blessing of regulatory bodies in the US, the UK, and the EU.

The acquisition was approved by the European Commission on the grounds that there would be fair competition in the market thanks to Microsoft's offer of 10-year free licensing deals, which guarantee access to Activision's PC and console games for European players and cloud game streaming services.

However, the UK's Competition and Markets Authority (CMA) blocked the transaction in April, citing concerns that the takeover would result in less innovation and fewer gaming options.

Activision and Microsoft blasted the ruling and announced they would appeal.

The company's "darkest day" in its forty years of operation in the nation, according to Microsoft President Brad Smith, was that day.

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