Microsoft could go forward with its deal to acquire videogame maker Activision Blizzard, a US judge ruled on Tuesday.The ruling cleared one of the last major hurdles to the $69 billion deal – the biggest deal in Microsoft and the videogame industrys history – as the court denied the request by the Federal Trade Commission (FTC) to stop the deal.The FTC had originally asked the judge for an injunction to stop the proposed deal, which was first announced on January 18, 2022, and argued that the merger would give Microsoft Corp a monopoly in the console gaming market.The federal body argued that if the deal went through, Microsoft would own the entire catalogue of Activisions games including the popular Call of Duty series. This could mean that Microsoft, makers of the Xbox gaming console, could shut out rivals such as Sonys PlayStation and Nintendos Switch.However, US District Judge Jacqueline Scott Corley disagreed with the FTC, giving a go-ahead to the Microsoft deal in the USA.“The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets,” she wrote in her ruling.Judge Corley gave the FTC until Friday to appeal the Courts ruling.Microsoft heads celebrate US Court ruling on Activision purchasePhil Spencer, the head of the Xbox brand, celebrated the ruling on Twitter, saying, “Were grateful to the court for swiftly deciding in our favour. The evidence showed the Activision Blizzard deal is good for the industry and the FTCs claims about console switching, multi-game subscription services, and cloud dont reflect the realities of the gaming market.“Since we first announced this deal, our commitment to bringing more games to more people on more devices has only grown. Weve signed multiple agreements to make Activision Blizzards games, Xbox first party games and Game Pass all available to more players than they are today.“We know that players around the world have been watching this case closely and Im proud of our efforts to expand player access and choice throughout this journey.”3/We know that players around the world have been watching this case closely and Im proud of our efforts to expand player access and choice throughout this journey. END— Phil Spencer (@XboxP3) July 11, 2023Similar sentiments were echoed by Brad Smith, the President of Microsoft, who said, “Were grateful to the Court in San Francisco for this quick and thorough decision and hope other jurisdictions will continue working towards a timely resolution. As weve demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns.”Our statement on todays decision: pic.twitter.com/jRDD8PhBeT— Brad Smith (@BradSmi) July 11, 2023“Our merger will benefit consumers and workers. It will enable competition rather than allow entrenched market leaders to continue to dominate our rapidly growing industry,” Bobby Kotick, Activision Blizzard CEO, said in a statement.UK regulators soften stance on Activision deal ready to consider proposalsAfter the US Court ruling, UKs Competition and Markets Authority, which had strongly objected to the merger since April, said that it was prepared to consider Microsofts proposals to address the antitrust concerns raised by the body.Brad Smith took to Twitter to confirm that Microsoft has agreed to pause its appeal against CMAs blocking of the deal to look at the ways that the antitrust concerns can be resolved.Our statement on the mutual request with the CMA for a pause of our appeal in the UK: pic.twitter.com/8Aky2IJjxS— Brad Smith (@BradSmi) July 11, 2023“After todays court decision in the U.S., our focus now turns back to the UK. While we ultimately disagree with the CMAs concerns, we are considering how the transaction might be modified in order to address those concerns in a way that is acceptable to the CMA,” Smith tweeted.“In order to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect.”
