(San Francisco) A US judge ordered Microsoft on Tuesday not to finalize the acquisition of Activision Blizzard studios (Call of Duty, Candy Crush) until the court has ruled on the appeal filed against the operation by the US competition authority, the FTC.
The FTC on Monday asked a federal court in San Francisco to temporarily suspend the acquisition announced a year and a half ago, for fear that the two American groups will complete the transaction despite concerns from various regulators.
The European Commission last month approved the takeover, which would make the computer giant the world’s third-largest player in the sector.
But their British counterpart has vetoed in the name of competition in the cloud gaming market (video games played remotely, without downloading).
“Microsoft and Activision should not complete the proposed transaction […] before five business days have elapsed after the Court has issued its decision on the FTC’s motion,” Judge Edward Davila ordered on Tuesday, according to a ruling seen by AFP.
The FTC had already launched an administrative procedure to determine the risks associated with this acquisition, but press articles circulated “suggesting that (Microsoft and Activision) were seriously considering completing the acquisition” despite this procedure and the prohibition of the CMA , the British authority, noted the American agency in a summary on Monday.
She therefore requested a hearing to decide on an interim ban. This is to take place on June 22 and 23 in San Francisco.
“The proposed transaction would allow Microsoft to continue to take control of high-value video games,” the FTC argued.
“By controlling Activision’s content, Microsoft could, and would have an incentive to, withhold that content, or lower its quality in a way that weakens competition, including in terms of quality, price, and innovation.”
“Confident”
Microsoft and Activision Blizzard assure them that this merger would, on the contrary, bring more choice to the video game market and would benefit players, American employees and shareholders.
The bosses of the two companies said on Monday that they welcomed this intervention by the FTC, which they said would speed up the procedure.
“We always prefer constructive, amicable methods with governments, but we are confident and look forward to presenting our arguments”, reacted on Twitter Brad Smith, president of Microsoft, who has been marketing Xbox consoles for more 20 years old and owns many studios.
And according to Bobby Kotick, chief executive of Activision Blizzard, the acquisition would allow “two American companies to better compete against international rivals that dominate the industry around the world,” according to a statement.
The publisher owns several phenomenal titles, which are played by tens of millions of people, from the Call of Duty shooter to the candy lines to explode on the famous Candy Crush, and to Overwatch which has a dedicated esports championship, the Overwatch League.
Tencent and Sony reign over the industry in Asia and beyond thanks in particular to Riot Games, the publisher of the planetary success League of Legends, for the Chinese giant, PlayStation consoles for the Japanese firm.