In a significant ruling, a US judge has given Microsoft the green light to proceed with its $69 billion acquisition of Activision Blizzard, dismissively rejecting the request from antitrust enforcers for a preliminary injunction to temporarily halt the deal. The court has extended its temporary restraining order until Friday at 11:59 pm to allow the Federal Trade Commission (FTC) to present an appeal. The FTC had initially appealed to the judge to block the proposed deal, voicing concerns that it would grant Microsoft exclusive access to Activision games, including the highly popular “Call of Duty,” and potentially limit their availability on other platforms. In response, the FTC spokesperson, Douglas Farrar, expressed disappointment and stated that the agency would announce its next steps to protect competition and consumers.
While the FTC argued that Microsoft’s acquisition would enable the company to leave competitors like Nintendo and Sony Group in a disadvantaged position by leveraging Activision games, Microsoft President Brad Smith expressed gratitude for the decisive ruling. Activision Blizzard CEO, Bobby Kotick, asserted that the merger would benefit consumers and workers while fostering competition in the rapidly growing gaming industry. To address the FTC’s concerns and promote competition, Microsoft has agreed to license “Call of Duty” to rivals, including a 10-year contract with Nintendo, which is contingent on the completion of the merger.
The court’s extension of the temporary restraining order allows the FTC an opportunity to lodge an appeal. During the trial in June, Microsoft CEO Satya Nadella emphasized that the company had no incentive to exclude competitors like Sony’s PlayStation in order to sell more Xbox consoles. The Microsoft-Activision deal is critical in a gaming market projected to grow by 36% to $321 billion over the next four years. Apart from “Call of Duty,” Activision Blizzard also produces other popular games such as “World of Warcraft,” “Diablo,” and “Candy Crush Saga.” However, Microsoft’s bid to acquire Activision Blizzard faces opposition from the Competition and Markets Authority in the UK, which previously blocked the takeover in April, with an appeal scheduled for July 28.
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