FTC temporarily blocks Microsoft-Activision merger, hearing coming next week

This week has brought through another update in the ongoing saga between Microsoft, Activision Blizzard and regulators. This time around, the FTC has finally begun to move its feet, filing for a temporary restraining order to stop the deal from closing, as well as a preliminary injunction that would block the deal for a longer period. 

The FTC filed its complaint with the US District Court for the Northern District of California. This is the same court that the private ‘gamer' lawsuit ended up going through. During that lawsuit, requests to stop the deal were denied by the judge.

The FTC has secured its temporary order to stop the deal from closing within the next couple of weeks. A hearing will take place on the 23rd and 24th of June to discuss the case. If the FTC fails to secure the Preliminary Injunction, then Microsoft would be able to close the deal, although the FTC could still take Microsoft to court after the fact.

Microsoft does not seem too concerned by the FTC's filings this week, with President Brad Smith saying that this should “accelerate the decision-making process”, which in turn would be a good move for everyone.

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KitGuru Says: We're finally getting towards the final decision point for this deal. Microsoft's appeal in the UK is ongoing and the Preliminary Injunction hearing in the US will be another milestone. We still don't know if Microsoft would close the deal despite the UK regulator's objections, but if the FTC does not secure the injunction, Microsoft would certainly close the deal despite their lawsuit. 

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