Microsoft has locked horns with the Federal Trade Commission (FTC) over the $69 billion deal to acquire California-based video game maker Activision Blizzard. A US district judge granted the FTC’s request to temporarily push pause on the deal. This came in response to the FTC seeking a restraining order that stops Microsoft from going through with the deal and provides time for the FTC to conduct an antitrust review.
The FTC had also filed for a preliminary injunction. However, since the requirements for granting a restraining order are far lower, the injunction remains pending and the request to grant one will be heard by the court on June 22. If it weren’t for the restraining order, Microsoft could’ve closed the deal as soon as Friday (June 16).
Activision Blizzard is the maker of many popular video games such as Call of Duty, World of Warcraft, Candy Crush Saga and more. Microsoft has been constantly trying to win the approval of world governments to allow the acquisition deal to go through. The EU approved of the deal in May. However, The British and US governments remain opposed.
In response to the restraining order Microsoft commented, “Accelerating the legal process in the U.S will ultimately bring more choice and competition to the gaming market. A temporary restraining order makes sense until we can receive a decision from the court, which is moving swiftly.”
The FTC presented the argument that if the deal went through, it would give the Xbox maker complete access to all of Activision’s games. Considering the fact that a few of their games rank amongst the most popular in the world, it would leave competitors like Nintendo and Sony’s PlayStation high and dry. Thus, stifling the video game market.
While Microsoft has said that the deal would benefit gamers and gaming companies worldwide, and has offered to sign a contract with the FTC to provide ‘Call of Duty’ games to its rivals for a decade, it remains to be seen what the final verdict over this $69 billion deal will be.