FTC denied injunction on Microsoft's Activision Blizzard acquisition
Posted : 12 July 2023
The Federal Trade Commission (FTC) sought a preliminary injunction from a US district court in San Francisco, California, to halt Microsoft's acquisition of Activision Blizzard.
A court has now determined that the FTC was not likely to prevail with its allegation that competition would be significantly reduced if the acquisition was to go through. The FTC had asked a preliminary injunction and restraining order on June 12th to prevent the deal from going through.
Because of rumours that Microsoft planned to proceed with its merger with Activision Blizzard despite the FTC's larger continuing investigation into the transaction, the agency issued the restraining order.
The largest gaming merger ever proposed, valued at $69 billion (£51 billion), will expire on July 18. The merger would have needed to be further postponed or maybe even cancelled outright, the United States District Court for the Northern District of California determined, had it approved the FTC's motion.
“After considering the parties’ voluminous pre- and post-hearing writing submissions, and having held a five-day evidentiary hearing, the court DENIES the motion for preliminary injunction,” Judge Jacqueline Scott Corley wrote in the Court’s opinion on the case.
“The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets.”
Microsoft President Brad Smith expressed gratitude for San Francisco Court's quick decision and urged other jurisdictions to work collaboratively to address regulatory concerns.
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