Microsoft
FTC temporarily blocks Xbox’s acquisition of Activision Blizzard
After the FTC’s maneuver, the case will go to federal court, which Microsoft has welcomed.
The Activision Blizzard acquisition soap opera has not yet written its final chapter. The British blockade has been followed by approval from the European Commission, which has agreed to allow the deal to proceed as long as Microsoft fulfills its commitments. All eyes are now on the Federal Trade Commission, which managed to temporarily block the deal.
The FTC has asked the California courts for a preliminary injunction to prevent Microsoft from taking any action against Activision Blizzard, which means the matter will be decided in federal court. According to the regulator, the two sides could have reached some sort of agreement otherwise, so the block was “necessary to maintain the status quo while the complaint is pending.”
An opportunity for Microsoft?
The FTC’s request was granted by the judge, so the hearing will take place between June 23 and 24. The Redmond company is celebrating the fact that it will be able to defend its position on such a short notice.
Brad Smith, president of Microsoft, said: “Today’s action by the FTC to file suit in our Activision case in federal court should accelerate the decision-making process. This benefits everyone.” He added: “We always prefer constructive and amicable paths with governments but have confidence in our case and look forward to presenting.”
Who really benefits from this situation? As attorney Richard Hoeg commented on the Virtual Legality podcast, “There’s no question that federal court is a more advantageous venue for MS. The only really big question is why the FTC decided to move now (they could have done this at any time.). “I believe MS convinced them they were going to close (not that I believe it). The FTC flinched.”
Microsoft’s acquisition of Activision Blizzard has been approved in more than 40 countries. However, the decision by the UK’s Competition and Markets Authority has been a setback and has caused a lot of friction between the two sides. It remains to be seen what the final decision will be.