A hearing is scheduled for next week.
(Photo: AP)
Washington Microsoft’s mega-takeover of video game provider Activision is temporarily on hold. A judge granted an application by the US antitrust authority FTC to temporarily stop the takeover with an injunction.
The move is necessary to maintain the status quo while the FTC’s lawsuit is pending, US District Judge Edward Davila reasoned on Tuesday (local time) in his decision. A hearing is scheduled for next week. Without the injunction, Microsoft could have closed the $69 billion deal on Friday.
The FTC and Activision declined to comment on the matter. Microsoft described the temporary injunction as useful until the issue was finally clarified.
The US antitrust authorities filed a lawsuit against the deal last December. A group of online gamers also want to prevent the takeover by court order. They fear that competition will be impaired if Microsoft no longer releases classic games such as “Call of Duty” for competitors such as Sony or Nintendo. The US group’s “Xbox” games console competes with the “Playstation” and “Switch” from the two Japanese companies.
Microsoft is also encountering resistance from the British antitrust authority CMA. Despite planned concessions, it banned the acquisition because it would transform the growing market for cloud games. Here, the graphics chip specialist Nvidia or the Internet group Google with their platforms are among the major providers. On the other hand, the long-term license agreements offered were enough for EU supervisors to give the Activision deal the green light.
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