Microsoft’s win in the FTC case: Will Activision Blizzard deal continue?

Microsoft has succeeded in a case against FTC for the acquisition of Activision Blizzard. The US federal Judge has given a verdict in favor of Microsoft. Judge Jacqueline Scott Corley has denied the FTC’s preliminary injunction request to block the Microsoft-Activision deal as planned before July 18 (which is also the deadline for the deal).

This news comes in handy for Microsoft as back in April, the deal was blocked by the UK Competition and Markets Authority citing that this could affect the future of the cloud gaming market. Even at that time, Microsoft President Brad Smith had shown his confidence in the deal and highlighted that it discouragement of investment and technology within the United Kingdom.

Microsoft’s win in the FTC case in U.S court

Corley mentioned that Microsoft’s acquisition of Activision has been emerging as the largest in tech history. This acquisition has attracted significant scrutiny. Fortunately, this scrutiny has yielded positive results. Microsoft has made a written commitment, both publicly and in court, to ensure that Call of Duty remains available on PlayStation for a duration of 10 years, with equal treatment to Xbox.

Moreover, Microsoft has forged an agreement with Nintendo to bring Call of Duty to the Switch. Additionally, the company has entered into multiple agreements to introduce Activision’s content to various cloud gaming services.

FTC spokesperson Douglas Farrar said to Indiatimes that they are disappointed with this decision. They still believe that the Microsoft-Activision merger will be a direct threat to cloud gaming, subscription services, and consoles.

Meanwhile, Microsoft’s president expressed his gratitude to the Court in San Francisco for its prompt and comprehensive decision, while also expressing hope that other jurisdictions will make progress towards a timely resolution. The company emphasizes its ongoing commitment to approaching regulatory concerns with creativity and collaboration throughout the process.

Our statement on today’s decision: pic.twitter.com/jRDD8PhBeT

— Brad Smith (@BradSmi) July 11, 2023

Will Activision Blizzard deal continue following Microsoft’s win against FTC?

The game is still on as FTC still has a chance to appeal against the San Francisco court before July 14, 11:59 P.M. Therefore, it could also appear as a hurdle. Second and most importantly, we can’t rule out UK’S CMA decisions which have already blocked the deal last April.

As the deadline rapidly approaches, Microsoft must strategize its approach. Proceeding with the deal while disregarding the UK’s CMA decision may not be advisable. Instead, Microsoft and Activision could consider extending the deadline. Given the current scenario, Microsoft is in a favorable position with both the European Union and the recent US court decision in their favor.

Similarly, the FTC and other counterparties are running out of options as time progresses. If they truly believe that these mergers will be detrimental to future competition, they will need to present a much stronger stance and provide compelling evidence to support their claims.

Header: Activision/ Fragster