A US Federal court on Tuesday banned Microsoft’s $69 billion purchase of California-based video game firm Activision Blizzard. The ruling was issued by US District Judge Jacqueline Scott Corley in response to the Federal Trade Commission’s request for a restraining order that would prevent Microsoft from concluding the purchase and provide extra time for an antitrust examination.
In a court filing on Monday, the Federal Trade Commission sought a restraining order and an injunction. However, the threshold for granting a restraining order is lower than the threshold for getting a preliminary injunction. The commission’s request for an injunction will also be heard on June 22.
The trial for the case is expected to commence on August 2 in front of the commission’s in-house judge.
The commission said that they moved the matter to federal court because they were concerned that Microsoft would attempt to finalize the deal with Activision Blizzard before the trial began, making it harder to reverse the purchase if it was ultimately determined to be unlawful.
Meanwhile, Judge Corley said that temporarily barring the acquisition was important to protect the status quo while the FTC’s legal suits against Microsoft are still unresolved.
In a written statement about the restraining order, Microsoft said, “Accelerating the legal process in the US 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 Xbox maker added
Microsoft has been attempting to get global official permission for its purchase of Activision Blizzard, the producer of popular games such as Call of Duty, World of Warcraft, and Candy Crush Saga. However, the United States and the United Kingdom have attempted to stymie the agreement, claiming that it would impede competition in the video game business.
