FTC Seeks to Halt Microsoft’s Acquisition of Activision Blizzard: Latest Updates

The FTC Seeks to Halt Microsoft’s Acquisition of Activision Blizzard

The United States Federal Trade Commission (FTC) has asked a federal court to halt Microsoft’s acquisition of Activision Blizzard. The FTC is concerned about potential antitrust issues.

FTC Requests Order to Prevent Deal Closure

Following Microsoft’s recent court victory against the FTC, the agency has now requested an order to prevent the deal between Microsoft and Activision Blizzard from closing. If granted, this could lead to the expiration of the deal.

Possible Negotiation for Deal Extension

On July 18, both parties will have the option to walk away from the deal, but it is likely that they will negotiate an extension instead.

Microsoft’s Response

Microsoft President Brad Smith expressed disappointment in the FTC’s pursuit of a weak case. He stated that Microsoft will oppose any further efforts to delay the deal’s progress.

FTC’s Claim

The FTC argued that Judge Jacqueline Scott Corley’s decision to reject a preliminary injunction raised significant issues for the Court of Appeals to resolve. The agency believes it is likely to succeed on appeal and supports granting an injunction pending appeal.

Pause in Legal Proceedings

The CMA, Microsoft, and Activision Blizzard announced a temporary halt to legal proceedings in order to seek an out-of-court agreement on the merger after Microsoft won its case against the FTC.