District Court Grants FTC Temporary Restraining Order On Microsoft-ABK Merger
Earlier this week, the US Federal Trade Commission filed a motion with the US District Court for a temporary restraining order and an injunction to prevent Microsoft and Activision Blizzard from sealing their deal while the agency is still conducting its investigation over antitrust concerns.
The US District Court of Northern California promptly granted the temporary restraining order and will be holding hearings on the preliminary injunction.
“The Court, having read and considered the TRO, finds that temporary relief is necessary to maintain the status quo while the Complaint is pending, preserve this Court’s ability to order effective relief in the event it determines a preliminary injunction is warranted, and preserve the FTC’s ability to obtain an effective permanent remedy in the event that it prevails in its pending istrative proceeding.”
“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,” reads Judge Jacqueline Scott Corley’s ruling.
The evidentiary hearing for the preliminary injunction has been scheduled for June 22nd and 23rd. This hearing will provide an opportunity for both the FTC and the involved parties to present evidence and arguments to their respective positions.
“Accelerating the legal process in the US will ultimately bring more choice and competition to the gaming market,” a Microsoft spokesperson said. “A temporary restraining order makes sense until we can receive a decision from the Court, which is moving swiftly.”
