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FTC appeals Microsoft-Activision takeover decision
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The Federal Trade Commission has appealed after a federal judge declined its request to block the Microsoft-Activision Blizzard $68.7 billion megamerger.
The ruling, issued by Judge Jacqueline Scott Corley at the US District Court for the Northern District of California, favored Microsoft and Activision Blizzard.
FTC first sued to prevent the merger in December and then requested an emergency injunction last month before the July 18 deadline of the transaction.
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It claimed the deal was anti-competitive as Microsoft would build games exclusive to its consoles or diminish the experience of Activision games on rival platforms.
Corley concluded that the FTC had not demonstrated a strong likelihood of success in its administrative challenge of the merger.
The FTC's move to appeal could take the case to the 9th Circuit appeals court.
Activision Blizzard CEO Bobby Kotick responded to the appeal: “I’d be surprised if they would waste taxpayer resources on something like that.”
He doubted the appellate court would approve a stay.
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Microsoft's president and vice chair, Brad Smith said: “The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers.
“We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.”
Microsoft is also working to secure approval for the deal in the UK and has agreed with the country's Competition and Markets Authority on a stay of litigation.
An Activision Blizzard spokesperson said: “The facts haven’t changed. We’re confident the U.S. will remain among the 39 countries where the merger can close.
“We look forward to reinforcing the strength of our case in court, again.”
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