Home » US business news » Microsoft secures Activision Blizzard deal as FTC loses appeals court battle

Microsoft secures Activision Blizzard deal as FTC loses appeals court battle

By Nithya Bose in US business news, posted July 17, 2023

The US Appeals Court has turned down the Federal Trade Commission's motion to temporarily block Microsoft’s acquisition of video game publisher Activision Blizzard.

The court's decision paves the way for Microsoft to proceed with the $68.7 billion deal, subject to resolving concerns raised by the UK's Competition and Markets Authority.

Both companies aim to finalize the transaction by July 18.

Brad Smith, President and Vice Chair of Microsoft, said: “We appreciate the Ninth Circuit’s swift response denying the FTC’s motion to further delay the deal.

“This brings us another step closer to the finish line in this marathon of global regulatory reviews.”

The FTC initially sued in December 2021 to prevent the merger, subsequently seeking an emergency injunction to halt the deal's closure.

The agency said the transaction could harm competition.

It speculated Microsoft might prioritize its Xbox game consoles or degrade the gaming experience for Activision titles on rival platforms, including the popular Call of Duty franchise.

But Microsoft has assured it plans to enhance the availability of games rather than limiting them.

Following a series of court hearings, a federal judge in San Francisco ruled against the FTC on Tuesday, July 11.

The agency filed an appeal on Wednesday, July 12, claiming the court had applied an incorrect legal standard.

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The FTC requested a temporary injunction while the court considered an appeal of the district court’s conclusion.

This setback adds to the agency's recent string of defeats in legal battles with tech companies under the leadership of Lina Khan.

It includes an unsuccessful attempt to prevent Meta from acquiring virtual reality fitness app startup Within.

The FTC declined to comment.

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