Microsoft Corporation (NASDAQ:MSFT)’s bid to buy video game developer Activision Blizzard Inc (NASDAQ:ATVI) faces another hurdle after US regulators moved to block the deal on Monday.
In a legal challenge filed in a San Francisco district court, the US Federal Trade Commission (FTC) argued Microsoft and Activision were set to complete the merger despite a block by the UK.
“Both a temporary restraining order and a preliminary injunction are necessary because Microsoft and Activision have represented that they may consummate the proposed acquisition at any time,” the FTC claimed.
This would be in spite of a ruling blocking the deal by the UK’s Competition and Markets Authority (CMA) in April over fears the pair could eventually restrict the cloud gaming market.
“Press reports began circulating suggesting that defendants were seriously contemplating closing the proposed acquisition despite […] the CMA orders,” the FTC continued.
The regulator requested the court temporarily block the deal by 15 June for two weeks, just over a month before an 18 July deadline.
European regulators gave the go-ahead for the deal last month, while the FTC had originally attempted to block the merger in December, with an evidentiary hearing due on 2 August.
Microsoft vice chair Brad Smith said the company “welcomed” the move and “the opportunity to present [its] case in federal court”.
“We believe accelerating the legal process in the US will ultimately bring more choice and competition to the market,” he added.