U.S. District Judge Jacqueline Scott Corley in San Francisco ruled in support of a temporary restraining order sought by the Federal Trade Commission that will stop Microsoft from closing the deal.
Microsoft, maker of the Xbox game system, has spent months trying to win worldwide approval for the merger. While a number of countries have approved the acquisition, regulators for two important economies - the U.S. and the U.K. - have taken action to stop it, arguing it could suppress competition in the video game market.
The trade commission already took Microsoft to court last year to block the merger, but that case was brought to the U.S. agency’s in-house judge in a trial set to start Aug. 2.
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