The Federal Trade Commission has withdrawn its complaint against Microsoft’s $68.7 billion Activision Blizzard deal after a federal judge ruled against a restraining order and injunction. The FTC was not granted emergeny relief by the Ninth Circuit Court of Appeals to stop the deal temporarily, according to a July 26 Spiceworks release.
“Microsoft has already shown that it can and will withhold content from its gaming rivals,” Holly Vedova, Director of the FTC’s Bureau of Competition said in a December 2022 news release. “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”
“The Federal Trade Commission (FTC) is now on the back foot as a U.S. federal judge denied a preliminary injunction that could have blocked Microsoft’s acquisition of Activision Blizzard,” the Spiceworks report stated. “The FTC was also not granted emergency relief by the Ninth Circuit Court of Appeals to temporarily stop the deal.”
Microsoft has responded positively to the administrative challenges, stating that it marks a steps closer to the establishment of the deal. As the deal approaches its date of conclusion, Activision Blizzard stock has risen to a value of $92 and is projected to reach the acquisition price of $95, Spiceworks reported.
Microsoft is required to finalize the deal by October 2023, and under the terms, will be obligated to pay $3 billion in fees in the event the companies split, according to Spiceworks.
"As we’ve said before, we are considering how the transaction might be modified to address the CMA’s concerns,” a Microsoft spokesperson told Engadget. “Microsoft and Activision Blizzard have agreed with the CMA that this is in the best interest of finding a prompt path forward.”
As the deal makes advancements in the U.S, it continues to face blockages in the U.K by the region’s Competition and Markets Authority. The agency initially blocked the deal in April, expressing concerns of it potential impact on the cloud gaming market, Engadget reported. The file has now been reopened, and the institution is expected to begin declaring a ruling Aug. 7.
“While Microsoft’s situation in the U.S. seems to ameliorate, the deal’s future in the U.K. is still a concern,” Engadget reported. “The acquisition deal is again under the scrutiny of the U.K. Competition and Markets Authority (CMA). This has come about after an appeals court granted an adjournment, making the CMA potentially reconsider Microsoft’s arguments on the case.”
