Microsoft is reportedly ready to fight in court to ensure that its acquisition of Activision Blizzard will go through should the U.S. Federal Trade Commission (FTC) file a lawsuit against the Redmond-based company to block the move, according at least to a Bloomberg source.
The deep throat of the news outlet, who for obvious reasons prefers to remain anonymous, claims that Microsoft has not been in talks with the FTC about any possible concessions with the aim of facilitating approval of the acquisition.
Bloomberg’s source says the FTC is nearing the end of its investigation and then the body’s commissioners would vote on whether or not to create a case to take to court, corroborating rumors in a New York Times report.
And apparently Microsoft is already preparing for the worst-case scenario and is prepared to challenge the FTC’s decision in court.
Bloomberg antitrust analyst Jennifer Rie says she would not be surprised if the U.S. antitrust authority takes the acquisition to court, but points out that in a legal dispute Microsoft could prevail.
However, in such a case, it could lengthen the timeline needed to complete the maneuver beyond the Redmond giant’s projected deadline of June 30, 2023.
Yet another option for Microsoft, although unrealistic, would be for it to abandon its acquisition of Activision Blizzard should the FTC attempt to block it.
That’s what happened in 1995 when the Redmond-based company abandoned its idea of acquiring Intuit Inc. in order not to get embroiled in a lengthy legal dispute.
Bloomberg sees the best solution for Microsoft would be to try to get approval from the Biden administration and accept an agreement in which it agrees not to deny Activision Blizzard titles to competitors.
This is a condition that by the way should not create problems for Phil Spencer. Having said that, it could turn out to be a winding road, according to the portal, anyway, as US antitrust bodies are leery of such agreements.
But Bloomberg says the FTC is taking a very aggressive approach against mergers, particularly when it comes to technology and digital markets.
It sued Meta in July to prevent it from buying the virtual reality fitness app Within, claiming it could eliminate competition in some markets.
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