Microsoft wins in court the FTC's preliminary injuction's request to acquire Activision Blizzard
Judge Corley has submitted a ruling DENYING the FTC's preliminary injuction motion against Microsoft's acquisition of Activision Blizzard, with the following statement:
Judge Corley's Ruling said:Microsoft’s acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox.
It made an agreement with Nintendo to bring Call of Duty to Switch. And it entered several agreements to for the first time bring Activision’s content to several cloud gaming services. This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action.
For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED.
The ruling will allow Microsoft to close the merge with Activision Blizzard ahead of its scheduled July 18th deadline, which is just a week off from the ruling, and while this surely allows Microsoft to carry on with the merge, there's still the CMA (Competition and Markets Authority) in the UK blocking the proposed merge overseas, with an appeal hearing scheduled on July 28th.
Europe in general has given the merge the green light according to several regulators, so basically it's only the UK's CMA which is currently halting the full merge for some additional time, and while it is possible that Microsoft might still go on without the UK's intervention, the most likely case is that they could extend the agreement to a date after the CMA hearing to clear the merge up worldwide.
UPDATE: Just a few minutes after the news of the court ruling, both Microsoft and the UK regulators have agreed to pause their battle to negotiate, which could mean that Microsoft might have a clean slate to go ahead with the acquisition without issues, if they do resolve the negotiations.
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