Title: FTC Reportedly Pauses In-House Trial on Microsoft’s Activision Blizzard Acquisition, Opening Door for Settlement Talks
Subtitle: Microsoft and Activision Blizzard express optimism as acquisition deadline extension granted
The Federal Trade Commission (FTC), the US antitrust agency, is said to be halting its upcoming in-house trial centered around Microsoft’s proposed $69 billion acquisition of Activision Blizzard. This move potentially paves the way for settlement discussions between the parties involved.
The FTC has long been vocal about its opposition to Microsoft’s proposed deal and filed a lawsuit in December of last year, aiming to block the acquisition. The agency argued that the merger would enable Microsoft to stifle competition in the gaming industry. Although the FTC’s attempt to prevent the deal from closing during its in-house court deliberations failed, it has stayed in the news.
Following the unsuccessful attempt to secure injunctive relief, the FTC is now preparing to suspend its own trial, which was scheduled to be heard by its in-house administrative court in August. Requested by Microsoft and Activision, this move is expected to be granted due to the FTC’s own rules, as reported by Bloomberg, citing sources familiar with the case.
Bloomberg further states that the FTC is likely to issue the order to withdraw its case later today. This development would enable Microsoft and Activision to persuade the agency’s commissioners to accept a settlement or drop their opposition to the acquisition entirely.
The original deadline for the merger’s closure had been set for July 18th. However, Microsoft and Activision Blizzard have agreed to extend it to October 18th, albeit with higher termination fees. Both companies express optimism about successfully completing the acquisition.
This shared optimism extends beyond the FTC. Microsoft and Activision recently reached an agreement with the UK’s Competition and Markets Authority (CMA). In April, the CMA officially blocked the acquisition. However, Microsoft and Activision applied for a two-month “stay of litigation” while potential remedies were discussed. The Competition Appeal Tribunal provisionally granted this request, which had been scheduled for Microsoft’s appeal against the CMA on July 28th.
Additionally, the CMA has extended the deadline for its final decision on Microsoft’s proposed acquisition of Activision Blizzard from July 18th to August 29th.
As developments unfold, it remains to be seen whether settlement talks will lead to a resolution or if Microsoft’s acquisition of Activision Blizzard will continue to face opposition from regulatory bodies around the world.