Microsoft’s $69 billion takeover of Activision Blizzard appeal paused by London tribunal

Microsoft’s appeal against the block on its $69 billion takeover of Activision Blizzard has been paused by a London tribunal. The pause is to allow the parties involved more time to resolve the dispute. Microsoft, Activision, and Britain’s competition regulator, the Competition and Markets Authority (CMA), all requested a two-month stay of the case after the CMA expressed interest in considering a modified deal proposed by Microsoft. The Competition Appeal Tribunal (CAT) ruled that the full hearing of Microsoft’s appeal, originally scheduled for July 28, should be adjourned. Judge Marcus Smith stated that he would be willing to adjourn the hearing if the CMA provided a justification for their request to delay. The judge also asked the CMA to outline any new consultation process. The CMA was the first major regulator to block the acquisition, citing concerns about competition in cloud gaming. The U.S. Federal Trade Commission (FTC) also opposed the deal but suffered a defeat when a federal court rejected their application to temporarily halt the merger. In Britain, the CMA’s final report is usually decisive, but last week they expressed an openness to reconsider a modified proposal. All parties involved have applied for a two-month pause of the case to allow for further discussions with Microsoft, and the CMA’s lawyers believe this will facilitate productive engagement with Microsoft’s proposals. Microsoft’s lawyer emphasized that the UK is the only obstacle to closing the deal and that speed is crucial.