Microsoft Corporation (NASDAQ:MSFT)’s takeover of Activision Blizzard Inc (NASDAQ:ATVI) has been blocked in the United States after regulators urged the deal be stopped in court on Monday.
Judge Edward Davila agreed with the Federal Trade Commission’s (FTC) argument that it was “necessary to maintain the status quo” after reports emerged that the companies may press ahead with the merger regardless of a block by UK regulators.
A hearing has been set for 22 and 23 June in San Francisco federal court, where evidence will be presented by both sides.
US regulators had requested on Monday that the court temporarily block the deal by 15 June for two weeks, just over a month before an 18 July deadline.
This followed concern that Microsoft and Activision would complete the US$69bn (£55bn) deal despite the UK’s Competition and Markets Authority (CMA) blocking it in April.
European regulators gave the go-ahead for the deal last month meanwhile, though UK regulators stalled on fears the respective makers of Xbox and Call of Duty could one day restrict the cloud gaming market.
Microsoft vice chair Brad Smith said the company welcomed the news following the FTC’s court filing, arguing a block would speed up the legal process of completing the deal.