The U.S. Federal Trade Commission Considering Appeal in Microsoft/Activision Blizzard Merger Case
The U.S. Federal Trade Commission (FTC) is currently contemplating an appeal following Tuesday’s ruling against their attempt to block the merger between Microsoft and Activision Blizzard.
Bloomberg reports that although no decision has been made as of yet, an appeal could potentially be filed “as early as Wednesday,” according to a source familiar with the matter.
Background
In a recent development, Judge Jacqueline Scott Corley of the United States District Court for the Northern District of California denied the FTC’s motion for a preliminary injunction on Tuesday.
This injunction, if granted, would have prohibited the $69 billion deal from being finalized until the FTC’s internal court had the opportunity to assess whether the merger negatively impacted competition within the gaming industry.
However, Judge Corley ruled that the FTC failed to establish sufficient evidence demonstrating that the acquisition would harm competition in the gaming sector.
In the meantime, Judge Jacqueline Scott Corley extended a temporary restraining order, preventing Microsoft from completing the merger until Friday. To proceed with an appeal, the FTC would need to approach the 9th Circuit Court of Appeals to request an extension on the stay.
Updates from the UK
In the same vein, the UK’s competition watchdog has halted their legal proceedings involving Microsoft and Activision Blizzard. Their goal is to negotiate a resolution regarding the merger plans, following its clearance in the United States.
Given the potential appeal by the FTC, the latest ruling marks a significant step forward in eliminating the remaining major obstacles to the completion of the deal. It is worth noting that the European Commission had already approved Microsoft’s acquisition of Activision Blizzard back in May.
