Microsoft and Activision Blizzard, the developer of Call of Duty, have jointly requested a US judge to expedite a case management conference in response to the Federal Trade Commission’s (FTC) legal attempt to block their proposed $69 billion merger. US District Judge Edward Davila has scheduled an evidentiary hearing for June 22-23 and temporarily halted the completion of the deal until a decision is made regarding a preliminary injunction. Without a court order, Microsoft could have finalized the deal as early as June 16.
The companies emphasized the urgency of the situation, citing the looming termination date of July 18 for Microsoft’s acquisition agreement, which includes a $3 billion termination fee. They expressed that a ruling on the preliminary injunction is crucial given the tight deadlines involved.
The FTC has expressed concerns that the merger would grant Microsoft’s Xbox console exclusive access to Activision games, potentially excluding Nintendo and Sony Group’s PlayStation from the market. The judge granted the FTC’s request to temporarily block the acquisition, and both parties must present their legal arguments against the preliminary injunction by June 16, with the FTC’s reply due on June 20.
Microsoft stated that expediting the legal process in the United States would ultimately promote more choice and competition in the gaming market. They believe that a temporary restraining order is reasonable until a decision is reached by the court, which is already progressing swiftly.
While the European Union approved Microsoft’s bid to acquire Activision in May, the takeover was blocked by British competition authorities in April.
