Microsoft-Activision: $69bn deal temporarily blocked in US

A judge has granted a request by regulators in the US to temporarily block Microsoft’s $69bn (£56bn) purchase of Activision Blizzard.

The court says the temporary restraining order “is necessary to maintain the status quo while the complaint is pending”.

The US Federal Trade Commission (FTC) says the deal could “substantially lessen competition” in the sector.

A two-day hearing is now due to take place from 22 June.

The deal to buy the Call of Duty publisher would be the largest in the history of the video games industry.

The move comes after the UK blocked the deal over concerns it would hurt competition, but the EU approved it.

Microsoft’s proposed takeover of Activision has split global regulators, and in order for the deal to go through the parties need approval from regulatory bodies in the UK, the EU and the US.

The European Commission has approved the acquisition, saying that Microsoft’s offer of 10-year free licensing deals – which promise European consumers and cloud game streaming services access to Activision’s PC and console games – mean there would be fair competition in the market.

But the UK’s Competition and Markets Authority (CMA) blocked the deal in April, saying it was concerned the takeover would offer reduced innovation and less choice for gamers.

Microsoft and Activision hit out at the decision and said they would appeal.

Microsoft president Brad Smith said it marked the company’s “darkest day” in its four decades of working in the country.