On Friday, the U.S. Circuit Court of Appeals for the Ninth Circuit denied the U.S. Federal Trade Commission’s (FTC) request to temporarily stay Microsoft’s $68.7 billion acquisition of video game maker Activision Blizzard.
“We appreciate the Ninth Circuit Court’s quick response in denying the FTC’s request for a further delay in the deal. This brings us one step closer to the finish line in the marathon of global regulatory scrutiny.‘ Brad Smith, Microsoft’s president and vice chairman of the board, said in a statement.
A federal judge in San Francisco ruled in favor of Microsoft on Tuesday after five days of court hearings, and the FTC appealed on Wednesday. The FTC first filed a lawsuit last December to block the acquisition of Activision Blizzard, then sought an injunction to prevent the deal from completing before the agency’s ALJ. The FTC argued that the deal was anticompetitive because, if completed, Microsoft would make a number of its games exclusive to its Xbox gaming consoles or the quality of Activision games, such as Xbox One. B. popular Call of Duty games, could decrease in competing services. Microsoft has announced that it will make games more accessible instead.
In an emergency motion filed Thursday in the Ninth Circuit Court of Appeals, the FTC said the district judge “Because the court denied injunctive relief by applying the wrong legal standard: The court actually required the FTC to prove its entire case on the merits and became the arbitrator of the legality of the mergerThe agency has requested an injunction while the court considers an appeal against the district court’s opinion.
The situation surrounding the deal between Microsoft and Activision Blizzard remains tense. Despite Microsoft’s success in the US, there are serious concerns from UK regulators. Microsoft is still working on the fix Issuein connection with the UK Competition and Markets Authority (CMA) deal. Microsoft and Activision Blizzard have the goal complete Deal until July 18th. The outcome of this case will be of great importance for the entire video game market and could set a precedent for future deals in this area.