The legal battle is over. While nearly all of the world’s most important markets received their final approvals almost two months ago, it’s true Microsoft may buy Activision Blizzard; America, that is Federal Trade Commissionshe had a problem with the merge.
In the middle of last month, a formal legal battle began that prevented Microsoft from making a purchase. Federal Trade Commission (FTC) officials wanted to prevent the acquisition record $68.7 billion.
But in the end they didn’t succeed. After five days of hearings from both sides (due to which interesting information surfaced, such as the alleged extortion of Activision or what other acquisitions Microsoft was considering), Judge Jacqueline Scott Corley issued a decision. final verdict. It was decided to deny the FTC’s request for a preliminary injunction against Microsoft, which would have further delayed the acquisition deal and could have ended up destroying it entirely. Instead, Microsoft has a free hand in the acquisition from the US side. In other words: Microsoft won.
Source: bethesdaAll this in one game? During the closing speech, the judge wondered why Call of Duty is so important.
“Microsoft’s acquisition of Activision has been called the largest acquisition in technology history. It deserves attention. That test paid off: Microsoft committed in writing, publicly and in court to keep Call of Duty on PlayStation for 10 years at the same level as on Xbox. He agreed with Nintendo to bring Call of Duty to the Switch. In addition, the company has entered into several deals that will bring Activision content to several cloud gaming services for the first time. The responsibility of the court in this case is narrow. This is to decide whether, regardless of these current circumstances, the merger should be stopped – perhaps even terminated – pending the FTC’s administrative action. For the reasons explained, the court finds that the FTC has not demonstrated the likelihood of success in its contention that this particular vertical merger in this particular industry could substantially restrict competition. In contrast, the records point to greater consumer access to Call of Duty and other Activision content. Therefore, the proposal for a preliminary injunction REFUSES,– we read in the official statement of the court.
However, this does not mean that Microsoft has completely got rid of the problems. The FTC can still appeal (until Friday 14.07). Although earlier officials did not use it for such large cases and losses. UK acquisition still not agreed (the beginning of the hearings is scheduled no earlier than July 28), of course Microsoft is running out of time. It was previously agreed with Activision Blizzard that the purchase would be completed by 7/17/2023..
Some are leaning towards the idea that now Microsoft can buy Activision Blizzard and then solve the problems in the UK and with the FTC. Although it would be better for Microsoft to reach an agreement with the UK Competition and Markets Authority (CMA) in the coming days.
The US Federal Trade Commission filed a lawsuit in December last year. This lawsuit only concerned the FTC’s request that a judge temporarily block Microsoft’s Activision Blizzard purchase. FTC spokesman Douglas Farrar said in a statement that they are disappointed with the outcome and see a clear threat the merger poses to open competition in cloud gaming, subscription services and consoles. “In the coming days, we will announce our next step to continue our fight to preserve competition and protect consumers,” Farrar added.
The Microsoft director also commented on the whole thing himself via Twitter.
Our statement on today’s decision: pic.twitter.com/jRDD8PhBeT
— Brad Smith (@BradSmi) July 11, 2023
“We are grateful to the San Francisco court for this prompt and thorough decision and hope that other jurisdictions will continue their efforts for a timely decision. As we have consistently demonstrated throughout the process, we are committed to creative and collaborative problem solving.“
Phil Spencer, head of Microsoft’s gaming division, said: “We are grateful to the court for the quick decision in our favor. The evidence has shown that the Activision Blizzard deal is beneficial for the industry, and the FTC’s announcements of switching consoles, subscription services, and the cloud do not reflect the reality of the gaming market.”
Bobby Kotick also reacted to the referee’s decision. The CEO of Activision Blizzard wrote that the merger will benefit both consumers and employees.
Source: Activision BlizzardActivision Blizzard will remain independent, Microsoft says
Source :Indian TV
