The US FTC files for a temporary restraining order and preliminary injunction to block Microsoft's acquisition of Activision Blizzard

- The FTC on Monday filed a temporary restraining order and preliminary injunction seeking to block Microsoft's proposed acquisition of Activision Blizzard.

CNBC 2023-06-13

Context & Ripple Effects

The filing moved the proposed transaction into an expedited court process. That process soon produced a court-ordered temporary pause, making the timing of any closing contingent on judicial review rather than the parties' preferred schedule.

The later coverage shows why this request mattered: the FTC's preliminary-injunction theory was rejected, followed by an FTC appeal after the ruling cleared the deal's path. The episode became a test of whether the agency could translate its concerns into the legal standard required for emergency relief.

First-order effects

Microsoft and Activision Blizzard must defend the transaction in court while the FTC seeks to prevent it from closing before the merits are resolved.
The FTC assumes the immediate burden of persuading a judge that temporary relief is warranted, turning its challenge into a near-term evidentiary fight.

Second-order effects

The parties' deal timetable becomes subject to litigation milestones and court orders, as reflected in the subsequent temporary restraining order and hearing process.
A loss or win on emergency relief shapes each side's leverage in the next stage of the dispute; the later denial of a preliminary injunction gave Microsoft a clearer route forward while leaving the FTC to pursue appeal options.

Third-order effects

If this pattern persists, major technology and gaming transactions will face more outcome-determinative injunction proceedings, where agencies must substantiate competitive-harm theories on an accelerated record.
The case underscores that merger enforcement can continue after an initial court setback through appeals and later challenges, though the corpus does not establish how broadly that approach will succeed.

The trend: Large technology-platform acquisitions are increasingly being decided through fast-moving court battles over whether regulators can secure pre-closing injunctions.

Discussion

Gameranx Ryan Parreno on x
Microsoft Activision Deal Accelerating In Light Of UK Appeal, FTC TRO
@bradsmi Brad Smith on x
Today's action by the FTC to file suit in our Activision case in federal court should accelerate the decision-making process. This benefits everyone. We always prefer constructive and amicable paths with governments but have confidence in our case and look forward to presenting i…
@fosspatents Florian Mueller on x
This here is from an MLex reporter. So the FTC may be worried about Microsoft being prepared to close over the CMA. Of course, it's also possible that the CMA told the FTC they might settle in the near term. Either way, this could be major progress for the deal. #UnblockABK https…
@tomwarren Tom Warren on x
BREAKING: The FTC has just filed a request for an injunction to block Microsoft from closing its Activision Blizzard deal. If the FTC is unsuccessful then Microsoft says it welcomes the opportunity to fast track the FTC case in a federal court. Details: https://www.theverge.com/.…
@matthewstoller Matt Stoller on x
To be more specific, this means that Microsoft will likely be withdrawing Activision games from the British market. https://twitter.com/...
@danprimack Dan Primack on x
Microsoft had done a remarkable job of flying below the Big Tech regulatory radar, letting Meta/Amazon/Google/Apple take all the hits. And then it tried to buy Activision...
@fosspatents Florian Mueller on x
Given that the FTC's motions for a preliminary injunction and temporary restraining order are based on a console theory, I wouldn't be surprised at all to see #Sony file an amicus curiae brief to support the FTC. Maybe they prepared one already as things are moving fast now. http…
@matthewstoller Matt Stoller on x
Astonishing. Rule of law or rule of Microsoft? The FTC has implied in its complaint that Microsoft is going to close the Activision deal despite the U.K.'s Competition and Markets Authority saying it's illegal. Brad Smith's job must be on the hook. https://www.bloomberg.com/... […
@fosspatents Florian Mueller on x
It appears certain by now that Sony did not ask to intervene in support of the CMA, but the UK case is all about cloud gaming.
@lulumeservey Lulu Cheng Meservey on x
The FTC can change the venue, but not the facts. https://twitter.com/...
@adamnash Adam Nash on x
It is quite the intellectual pretzel to believe that @NintendoAmerica and @Sony need the FTC to protect them from a competing platform with a library of proprietary games... given their successful investments in proprietary games. 🤷‍♂️ https://www.cnbc.com/...
@stephentotilo Stephen Totilo on x
The FTC's initial, ongoing suit against Microsoft's Activision bid never had the power to block the deal. It was long expected that they'd sue in federal court to block it. Microsoft's take is that this will get everything closer to a resolution. https://www.axios.com/...
@deeketweak Derek Strickland on x
The FTC outlines what kinds of business-altering things Microsoft and Activision could start doing if the courts don't issue a TRO to temporarily bar the merger. [image]
@deeketweak Derek Strickland on x
In its request for a temporary restraining order (TRO), the FTC says it is “likely to succeed” in proving that the merger harms competition. FTC is asking SF courts in the Northern District of California to provide the TRO so it can complete its administrative litigation. [image]
@levie Aaron Levie on x
The Federal Trade Commission does not seem to really like Trade. [image]
r/news r on reddit
FTC Plans to Seek a Restraining Order to Stop Microsoft, Activision Deal
r/XboxSeriesX r on reddit
FTC to file injunction seeking to block Microsoft's acquisition of Activision Blizzard
r/Games r on reddit
FTC to file injunction seeking to block Microsoft's acquisition of Activision Blizzard

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