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The US Federal Trade Commission (FTC) has lost its last chance to block Microsoft’s takeover of Activision Blizzard. This is the FTC’s second straight loss in a news-making case that will largely determine the fate of Microsoft’s deal with Activision.
Last week, a judge in the United States said that Microsoft’s agreement with Activision did not reduce competition in the video game industry, contrary to the FTC’s claims. The FTC was trying to block the finalization of the deal pending the determination of another pending case.
According to Vergethe Federal Trade Commission ruled by the judge Jacqueline Scott Corley was issued and sent to the appeals court; However, the US 9th Circuit Court of Appeals denied the FTC’s request for a temporary injunction to block the Activision takeover. In fact, the FTC was trying to temporarily ban the contract before the appeals case was over.
Microsoft welcomed the decision hours after the appeals court’s ruling, saying it appreciated the 9th Circuit’s swift action to deny the FTC’s request. Microsoft says that by issuing this ruling, it is one step closer to acquiring Activision.
In this way, Microsoft can turn Activision into its subsidiary today without any legal problems in the United States and after the temporary restraining order issued by Judge Corley ends.
According to the terms of the contract, Microsoft has up to three more days to close the contract; Otherwise, it may be forced to renegotiate the terms of the contract and pay Activision $3 billion in damages. Of course, both parties to the contract can extend the deadline if they wish.
Microsoft probably won’t be able to close the deal immediately. The company continues to face opposition from the UK’s Competition and Markets Authority (CMA). Microsoft and the CMA have agreed to stop taking legal action against each other and sit down to the negotiating table.
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