- FTC Appeals Decision: Regulator challenges court ruling allowing Microsoft’s acquisition of Activision Blizzard
- Microsoft Opposes Appeal: Tech giant expresses opposition to further delays
- US Judge Rejects FTC’s Case: District judge denies emergency ruling to halt the acquisition
The Federal Trade Commission has appealed a decision allowing Microsoft to proceed with its $69 billion (£53 billion) acquisition of games publisher Activision Blizzard.
A district judge in San Francisco denied the FTC’s request to halt the acquisition earlier this week.
The technology giant’s acquisition of the Call of Duty producer would be the game industry’s largest.
Microsoft stated that it would oppose the regulator’s appeal.
Microsoft President Brad Smith issued the following statement: “We are disappointed that the FTC continues to pursue what has become a demonstrably weak case, and we will oppose any further efforts to delay the ability to move forward.”
The FTC alleged that the agreement would harm gamers and reduce competition by granting Microsoft, the maker of the Xbox, the ability to deny competitors access to Activision’s games.
The FTC sought an emergency ruling to halt the transaction while it challenges the planned acquisition.
On Tuesday, US District Judge Jacqueline Scott Corley predicted the FTC would lose.
She stated that the regulator had failed to demonstrate that “the merged company will likely pull Call of Duty from Sony PlayStation or that its ownership of Activision content will significantly reduce competition in the video game library subscription and cloud gaming markets.”
The ruling in the United States is the clearest indicator to date that Microsoft’s acquisition will proceed.
The UK’s competition regulator appeared to soften its opposition to the merger this week as well.
Competition and Markets Authority (CMA) was the first regulatory body in the world to block Microsoft’s proposed acquisition of Activision.
It feared that the merger would stifle innovation and leave gamers with fewer options.
Wednesday, the CMA stated that it was “prepared to consider any Microsoft proposals to restructure the transaction.”
“Microsoft and Activision have indicated that they are considering how the transaction might be modified. And the CMA is prepared to engage with them on this basis,” the statement continued.
The Microsoft-Activision transaction, which is scheduled to be finalized later this month, has divided global watchdogs.
EU regulators approved the transaction, citing Microsoft’s reassurances regarding competition concerns.
