Following a California judge's decision on the FTC's attempt to block the Microsoft Activision Blizzard acquisition from going through, the FTC has filed an appeal. The action came swiftly following the judgment.
On July 11, Judge Jacqueline Scott Corley made a decision in the fight, turning down the FTC request for a preliminary injunction. The judge declared that the FTC failed to show that the acquisition would significantly harm competition, going so far as to indicate that the results of the acquisition might actually increase accessibility for some gamers. However, the FTC was quick to voice its displeasure at the decision, and stated that it was weighing its options on how to proceed next.
Now, the FTC has filed an appeal in an attempt to challenge the judge's verdict. If the appeal is successful, the FTC may win what it wanted in the first place: an injunction preventing the acquisition, at least temporarily. This would be a blow to Microsoft, as the two companies announced this deal way back in January 2022 and have been trying to see it through since.
In the meantime, Microsoft and Activision spokespersons have both expressed disappointment at the appeal attempt. However, it's also clear that the companies are still intending to push forward with the deal even with this latest effort from the FTC. In a statement to IGN, an Activision Blizzard spokesperson stated "We’re confident the U.S. will remain among the 39 countries where the merger can close." Microsoft president Brad Smith also noted "We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward."
It's clear that the FTC wanted to waste no time on requesting an appeal, as it had until the end of the week to do so but pushed it through just one day after the Microsoft Activision Blizzard merger hurdle was cleared. For now, it remains to be seen how the Ninth Circuit Court of Appeals will respond. If the case is remanded back to Judge Corley, it may result in a different verdict.
While the FTC's current attempts to gain an injunction against the deal are likely Microsoft's biggest stopping block right now, it's not the only hurdle to clear. The UK previously blocked the Microsoft Activision Blizzard acquisition. Microsoft was reportedly evaluating how the companies could modify the transaction in order to meet the demands of the UK's Competitions and Markets Authority. It seems that issue has smoothed out recently, though, with the CMA pausing legal action to consider new or altered proposals from Microsoft. With just days left before major deadlines are reached, it will be interesting to see how the Ninth Court of Appeals responds to the FTC's request and whether this monumental deal can finally go forward once and for all.
Source: IGN