The US apes the UK, but stands in opposition to EU, by blocking Microsoft-Activision deal... for now

A US judge has blocked Microsoft from buying Activision Blizzard following a request from the Federal Trade Commission (FTC).

The move is a temporary block while a complaint by the FTC that the deal could "substantially lessen competition" in the gaming sector is fully investigated. It puts the US in agreement with the UK, which blocked the deal earlier in the year, but is standing against the European Union which has given it the green light.

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In the US, the UK and the EU, there have been concerns about the implications of the proposed $69 billion takeover of Activision Blizzard by Microsoft. Agreement by all three regions is needed in order for the deal to go ahead, and it is not clear if the result of proceedings in the US could force the UK to change its mind and grant permission.

In issuing the temporary restraining order and preliminary injunction, the court said:

1. Microsoft and Activision shall not close or consummate their proposed transaction or a substantially similar transaction until after 11:59 p.m. Pacific Time on the fifth business day after the Court rules on the FTC's request for a preliminary injunction under Federal Trade Commission Act § 13(b), 15 U.S.C. § 53(b), or a date set by the Court, whichever is later; and

2. Microsoft and Activision shall prevent any of their officers, directors, domestic or foreign agents, divisions, subsidiaries, affiliates, partnerships, or joint ventures from closing or consummating, directly or indirectly, the proposed transaction or a substantially similar transaction.

The case is due to be heard on June 22 and 23, with Microsoft and Activision having until June 16 to submit their legal arguments against the FTC's claim that the deal would unfairly disadvantage the likes of Sony and Nintendo.

The full ruling can be seen here.

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