The US Federal Trade Commission (FTC) is moving forward with its efforts to contest Microsoft’s planned acquisition of Activision Blizzard, despite an initial setback in July 2023.
Following a temporary pause in proceedings, the FTC has announced its intention to continue with an in-house trial aimed at preventing the acquisition. The FTC argues that the deal could negatively impact competition in the global gaming market. According to Victoria Graham, an FTC spokesperson, “The FTC continues to believe this deal is a threat to competition, and our current focus is on the federal appeal process.”
While the FTC’s initial attempt to block the acquisition was denied, the organization filed an appeal to have the case re-evaluated. This move is somewhat unusual for the FTC, which typically drops challenges after losing in federal court.
The FTC’s in-house hearings are expected to commence approximately 21 days after the US Court of Appeals provides an opinion on the FTC’s appeal. The outcome of this appeal remains uncertain, but the FTC is determined to proceed with its efforts.
The timeline of the Microsoft-Activision Blizzard acquisition, expected to close on October 18, 2023, raises questions about the potential impact of the FTC’s challenge. Recent developments saw the UK Competition and Markets Authority provisionally approve the acquisition after a lengthy appeals process. However, the future of the deal now appears less certain.
An Activision spokesperson acknowledged the FTC’s challenge but expressed the company’s focus on working with Microsoft toward closing the deal. “We still anticipate that we will close the transaction by October 18, and we have full confidence in our case and the deal’s benefits to gamers and competition,” stated Rebecca Dougherty, a Microsoft spokesperson.
Stay tuned for further updates on this ongoing case.
but the FTC’s ongoing challenge has introduced new uncertainty. Both Microsoft and Activision Blizzard remain confident in their case and the benefits of the acquisition to gamers and competition. Stay updated for further developments in this ongoing case.
