The Federal Trade Commission (FTC) is persisting in its efforts to halt Microsoft’s $68.7 billion acquisition of game publisher Activision Blizzard. On Wednesday, the FTC filed an appeal against a federal judge’s denial of a preliminary injunction that would have prevented the deal from closing.
This development came after Judge Jacqueline Scott Corley ruled in favor of Microsoft and Activision Blizzard the day before.
The FTC initially filed a lawsuit to block the acquisition in December and subsequently sought an emergency injunction last month ahead of the July 18 deadline. The FTC argued that the deal would lead to anti-competitive practices, such as Microsoft making games exclusive to its own consoles or diminishing the experience of Activision games on rival services. Microsoft countered by stating it would instead make the games more widely available.
Judge Corley ruled that the FTC had not demonstrated a likelihood of success in its administrative challenge of the merger.
According to CNBC, the FTC may take the judge’s decision to the 9th Circuit appeals court.
Activision Blizzard CEO Bobby Kotick expressed doubt about the FTC pursuing an appeal, stating, “I’d be surprised if they would waste taxpayer resources on something like that.” Kotick also expressed skepticism that the appellate court would grant a stay.
The FTC declined to comment on its legal response to the judge’s decision.
“The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers,” said Brad Smith, Microsoft’s president and vice chair. “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.”
In addition to dealing with the FTC’s appeal, Microsoft is also seeking approval for the acquisition in the United Kingdom. Microsoft executive Brad Smith stated that the company and Activision Blizzard have reached an agreement with the country’s Competition and Markets Authority for litigation to be put on hold.
“The facts haven’t changed. We’re confident the U.S. will remain among the 39 countries where the merger can close,” wrote an Activision Blizzard spokesperson in an email. “We look forward to reinforcing the strength of our case in court, again.”
Overall, Microsoft remains determined to proceed with the acquisition despite the ongoing legal challenges.
[Video: Activision CEO Bobby Kotick expresses surprise at the possibility of the FTC appealing the court’s decision.]
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