Title: U.S. Federal Trade Commission Contemplates Appeal following Ruling on Microsoft/Activision Blizzard Merger
Subtitle: Court ruling denies preliminary injunction, channeling the merger closer to completion
Date: [current date]
The U.S. Federal Trade Commission (FTC) is reportedly considering an appeal following Tuesday’s ruling against their attempt to block the Microsoft/ Activision Blizzard merger. A source familiar with the matter revealed that the FTC may file the appeal as early as Wednesday, according to Bloomberg.
The ruling delivered by Judge Jacqueline Scott Corley of the United States District Court for the Northern District of California denied the FTC’s motion for a preliminary injunction. The proposed injunction aimed to halt the $69 billion deal until the FTC’s in-house court could assess whether the merger would stifle competition in the gaming industry.
Judge Corley sided with Microsoft and Activision Blizzard, stating that the FTC did not provide sufficient evidence to support their claims that the acquisition would harm competition within the gaming sector.
Nevertheless, US District Judge Jacqueline Scott Corley extended a restraining order preventing Xbox Game Studios (Microsoft) from finalizing the deal until Friday. If the FTC decides to appeal the ruling, they will have to approach the 9th Circuit Court of Appeals to request an extension of the stay.
Simultaneously, the United Kingdom’s competition watchdog announced that it has temporarily paused its legal proceedings with Microsoft and Activision Blizzard. The UK regulator intends to explore the possibility of reaching an agreement regarding the proposed merger following its clearance in the United States.
The recent ruling against the FTC’s preliminary injunction removes one of the final significant obstacles to the completion of the Microsoft/Activision Blizzard merger. Notably, the European Commission had previously approved Microsoft’s acquisition of Activision Blizzard in May, reinforcing the momentum towards finalizing the deal.
While the possibility of an appeal looms, industry and gaming enthusiasts await further developments to determine the fate of the Microsoft/Activision Blizzard merger.