Microsoft has acquired US video game maker Activision Blizzard for $69 billion. (Photo: 123RF)
A federal judge in California has dismissed the FTC’s request for an immediate stay of Microsoft’s acquisition of video game manufacturer Activision, giving the US government a first setback in this case.
The ruling, dated Monday and released Tuesday, addresses only the urgent procedure initiated by the FTC and does not address the merits of the case, which will be decided at a later date. In that case, a hearing is scheduled for late August.
The competition authority had initiated this process, in summary, on the basis of press articles “indicating that (Microsoft and Activision) are seriously considering completing the acquisition,” despite opposition from several regulators, the document, filed in mid-June, said.
In addition to the FTC, its UK counterpart, the CMA, has also vetoed the marriage on behalf of competition in the “cloud gaming” market (video games played remotely without downloading).
Still, Microsoft President Brad Smith announced on Tuesday that the group would make proposals to the CMA to try to “react.” [à ses] Concerns about acquiring Activision “acceptably.”
“We stand ready to consider any proposal by Microsoft to amend the transaction,” the CMA said in a response sent to AFP, while Microsoft decided to stay the case in the UK courts over the regulator’s initial veto.
The European Commission approved the acquisition in May. The computer giant would become the industry’s third-biggest player globally, with a transaction value of $69 billion, according to the estimate released when it was first announced in January 2022.
If only a summary decision, the recitals of the California ruling constitute a snub to the FTC and bode a difficult legal course for the regulator.
“The FTC has not established that it can show that this transaction is likely to reduce competition in this industry,” wrote federal judge Jacqueline Scott Corley.
“We are grateful to the San Francisco court for this prompt and thorough decision, and we hope other jurisdictions will continue to work toward expeditious resolution of ongoing disputes,” Microsoft President Brad Smith said in a press release.
The official reiterated the group’s desire to “address regulators’ concerns.”
When asked by AFP, the FTC did not immediately respond.