Supreme Court Justice Elena Kagan Tuesday recently confirmed the court’s decision to reject an emergency request to block Microsoft and Acitivison Blizzard’s merging deal. According to a July 18 report by The Hill, the representative denied the last-minute proposal made by a group of gamers to temporarily pause the $68.7 billion deal, during a brief order.
“Failure to grant relief will allow the largest technology merger to consummate before plaintiffs can even be heard on the merits,” Joseph Alioto, the attorney representing the gamers, said to The Hill.
The merger would grant Microsoft, the owner of Xbox, control over popular game franchises “Call of Duty,” “World of Warcraft” and “Overwatch,” according to The Hill.
Alioto argued the merger would result in less competition among the video game industry, and requested a longer halt to gain additional time for the gamers’ case to be heard in the 8th U.S. Circuit Court Of Appeals, which recently denied the bid by the Federal Trade Commission, The Hill reported.
“The merger has a Tuesday closing deadline, but Bloomberg reported the parties won’t walk away and will continue seeking the needed regulatory approvals,” the Hill reported.
The update follows a lawsuit made on behalf of gamers this past December, accusing the deal of having the potential to minimize competition across multiple video game markets, The Hill report noted. A federal district court sided with Microsoft this past May, denying the gamers’ request and ruling the deal would not pose a threat that could cause irreparable harm. The decision was appealed last month and is still pending.
The deal still faces additional barriers in the United Kingdom after Microsoft and British regulators were granted additional time to reach a solution, according to The Hill..
“The merger between Microsoft and Activision would be one of, if not the, largest technology mergers in history, at a time when concentration among technology companies is already threatening the competitive balance of our economy and even our political systems,” Alioto said to The Hill.
