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Microsoft’s Activision Acquisition Moves Forward as FTC Appeal is Denied

The FTC's appeal against Microsoft's Activision acquisition is denied, prompting a new push for a temporary pause.

Gazettely Editorial by Gazettely Editorial
2 years ago
in Games, News, Xbox
Reading Time: 2 mins read
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In a significant development, the US Federal Trade Commission (FTC) has had its initial appeal against the recent ruling in the Microsoft and Activision Blizzard case swiftly denied. US District Judge Jacqueline Scott Corley, who presided over the main case, rejected the FTC’s appeal late last night.

Following the denial of their appeal, the FTC has shifted its focus to a new attempt for a “temporary pause” on Microsoft’s $68.7 billion acquisition of Activision Blizzard, according to reports from Reuters. This time, the FTC has taken its case to the Ninth Circuit Court of Appeals.

FTC Argues Judge Corley’s Ruling was too Harsh

The FTC asserts that its original court case was judged too harshly, claiming that Judge Corley set an unreasonably high bar for the FTC when it was simply seeking additional time to examine the deal.

The commission also expresses dissatisfaction with Judge Corley’s handling of matters related to subscription access to Call of Duty and the perceived lack of importance placed on scrutinizing deals with cloud gaming competitors.

Your tax dollars at work.

— Mike Ybarra (@Qwik) July 12, 2023

As the case continues, there is growing political pressure for the FTC to acknowledge defeat. FTC boss Lina Khan faced questioning from US politicians, who sought answers regarding the regulator’s recent track record of losses in company merger cases.

Representative Kevin Kiley expressed concerns about the taxpayer funds being utilized in these legal battles and questioned the FTC’s judgment in light of Judge Corley’s ruling.

Microsoft and Activision Blizzard Deal at Risk An Investigation Is Underway

Microsoft Stands Firm and Prepares to Move Forward

Microsoft has commented on the FTC’s persistent efforts to delay the acquisition, affirming its commitment to proceed with the deal. Microsoft President Brad Smith expressed disappointment in the FTC’s continued pursuit, labeling the case as weak and stating that the company would oppose any further attempts to hinder the progress of the acquisition.

A ruling on the FTC’s latest appeal is expected to be delivered later today. The next few days will prove crucial in determining the fate of the deal. Microsoft’s plans to acquire Activision Blizzard have a formal expiry date of next Tuesday, July 18th. Assuming no further obstacles arise, the companies appear poised to finalize the deal as soon as possible over the upcoming weekend.

Discover the Game-Changing Trends: Explore our comprehensive top 10 list that unveils the gaming innovations that have redefined the industry. Immerse yourself in the captivating world of video games and witness the evolution of gaming firsthand.

Tags: Activision BlizzardFederal Trade CommissionFTCMicrosoft
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