The private plaintiffs sued Microsoft in California federal
court in December to enjoin the deal, which they called harmful to competition.
US District Judge Jacqueline Scott Corley in San Francisco
federal court said in a ruling issued late on Friday night that the video
gamers had not shown they would be "irreparably harmed" if the merger
were allowed to proceed before she rules on the merits of their case.
Microsoft and its lawyers contend the acquisition would
benefit consumers.
Corley pushed back on the gamers' allegation that Microsoft
would limit availability of the game. The judge said there was no evidence
Microsoft could make current versions of Call of Duty stop working after the
planned merger, Corley wrote.
"The day after the merger they can play exactly the
same way they played with their friends before the merger," Corley wrote.
The judge also said "it is not likely" Microsoft will make any newer
version of Call of Duty exclusive to the company's platform prior to a ruling
on the merits of the deal.
A Microsoft spokesperson on Monday did not immediately
respond to request for comment.
A lawyer for the gamers said on Monday they will press on
with their challenge to the deal despite losing this preliminary round.
Joseph Alioto said the court concluded that a preliminary
injunction "was not necessary at the moment," but said the
"evidence is very strong" that the proposed acquisition violates US
antitrust law.
The court's order comes just days after Microsoft won EU
antitrust approval. The deal faces regulatory scrutiny by the US Federal Trade
Commission, and also in China and South Korea.
British competition authorities rejected the deal, which
would be the largest-ever in the gaming industry. Microsoft faces a May 24
deadline to appeal the decision.
US antitrust law allows private plaintiffs to sue over
mergers and acquisitions.
Corley dismissed the gamers' first lawsuit in March, ruling
that plaintiffs had not offered adequate factual support for claims that the
deal would violate US antitrust law.
She allowed the plaintiffs to bring an amended complaint.
Microsoft's bid to dismiss the case is pending. © Reuters