Game-Changing Verdict: FTC Appeals Court Decision Rocks Microsoft Activision Blizzard Acquisition Trial

The FTC has appealed a California judge's decision regarding the Microsoft Activision Blizzard acquisition. The appeal promptly followed the judgment.

Judge Jacqueline Scott Corley ruled on July 11, denying the FTC's request for a preliminary injunction. The judge concluded that the FTC did not demonstrate that the acquisition would cause significant harm to competition and even suggested that it might enhance accessibility for certain gamers. Despite the judge's decision, the FTC expressed its dissatisfaction and is considering its next steps.

Now, the FTC has lodged an appeal in a bid to contest the judge's ruling. Should the appeal prove successful, the FTC could attain its original objective: obtaining an injunction to halt the acquisition, even if only for a temporary period. This would deal Microsoft a significant setback, considering that the two corporations unveiled this agreement as far back as January 2022 and have been striving to bring it to fruition ever since.

Microsoft and Activision spokespersons have expressed disappointment at the appeal attempt. However, both companies are determined to proceed with the deal despite the FTC's latest effort. According to an Activision Blizzard spokesperson, they are confident that the merger can still be completed in the United States, among the 39 countries involved. Microsoft President Brad Smith also expressed disappointment in the FTC's pursuit, calling it a weak case, and vowed to oppose any further attempts to delay progress.

The FTC wasted no time in filing the appeal, doing so only a day after the hurdle was cleared for the Microsoft Activision Blizzard merger. The Ninth Circuit Court of Appeals will now determine how to respond to the appeal. If the case is sent back to Judge Corley, a different verdict could be reached.

While the FTC's current efforts to obtain an injunction against the deal pose a significant obstacle for Microsoft, it is not the only challenge they face. The acquisition of Microsoft Activision Blizzard was previously blocked by the UK. Microsoft has been assessing how to modify the transaction to comply with the demands of the UK's Competitions and Markets Authority. However, recent developments indicate that this issue has been resolved, as the CMA has temporarily halted legal proceedings to review revised proposals from Microsoft. As key deadlines approach, it remains to be seen how the Ninth Court of Appeals will respond to the FTC's request and whether this significant deal will ultimately proceed.