A California judge has granted Microsoft permission to proceed with its acquisition of Activision Blizzard after a five-day hearing, which is seen as a major win for the tech giant. Despite facing an ongoing antitrust case by the Federal Trade Commission (FTC), Judge Jacqueline Scott Corley denied the regulator’s request for a preliminary injunction, allowing the merger to move forward. The court’s decision was influenced by Microsoft’s commitment to keeping Call of Duty on PlayStation and expanding it to Nintendo Switch.
Judge Corley’s ruling highlighted Microsoft’s explicit promises to maintain Call of Duty on PlayStation for the next decade and extend the game to Nintendo Switch. She also acknowledged Microsoft’s agreements to bring Activision’s content to various cloud gaming services. The judge concluded that the FTC had failed to provide sufficient evidence to support its claim that the merger would substantially reduce competition. Microsoft President Brad Smith expressed gratitude for the court’s decision, while Xbox Head Phil Spencer took to Twitter to debunk the FTC’s claims about the gaming market.
In the midst of the legal battle with the UK’s Competition and Markets Authority (CMA), Microsoft and the CMA have mutually agreed to temporarily halt proceedings to engage in further negotiations. This pause is aimed at addressing the CMA’s concerns regarding cloud gaming. Microsoft is considering modifications to the transaction to address these concerns, and both parties have jointly requested a pause from the Competition Appeal Tribunal. The CMA has expressed willingness to review any proposals from Microsoft that would alleviate its concerns.
The CMA’s rejection has posed a significant challenge for Microsoft’s acquisition of Activision Blizzard, despite the deal receiving approval from European regulators in May. While the European approval allows Microsoft to proceed without the involvement of the UK, the tech giant is seeking a resolution with the CMA to ensure a smoother outcome.
The FTC has until July 14th to appeal Judge Corley’s decision, but the fact that it did not appeal a similar case involving Meta’s acquisition suggests that it may not pursue further action.
