FTC loses appeal bid to halt Microsoft-Activision Blizzard deal

The US Federal Trade Commission (FTC) has lost its appeal, meaning Microsoft can now close out its acquisition of Activision Blizzard. [Updated]

Update:
The 9th US Circuit Court of Appeals has denied the FTC's request for injunctive relief to pause Microsoft's acquisition of Activision Blizzard. Jude Corley's temporary restraining order on the deal has also now expired, which means that Microsoft is now free to close out the takeover.

"We appreciate the Ninth Circuit's swift response denying the FTC's motion to further delay the Activision deal, Microsoft president Brad Smith said on Twitter. "This brings us another step closer to the finish line in this marathon of global regulatory reviews."

The only regulatory body that stands in the way now is the UK's Competition and Markets Authority, which has extended its deadline for the deal. Microsoft is reportedly considering selling off cloud-based market rights for games in the UK to appease the regulator.

Original story:
Earlier this week, Judge Jacqueline Scott Corley denied the FTC's request for a preliminary injunction to block Microsoft from completing its $69 billion acquisition of Activision Blizzard before the deal's July 18 deadline and the FTC's administrative case in August. Now the FTC has filed an appeal against Judge Corley's decision.

Microsoft "disappointed" with FTC appeal

FTC officially appeals Microsoft Activision Blizzard court ruling

The appeal will see the FTC attempt to overturn the court's ruling for the preliminary injunction. While FTC's court filing doesn't give any details about the US regulator's argument, the FTC will want the Ninth Circuit Court of Appeals to extend the deal's existing temporary restraining order that expires on Friday, July 14. Once that restraining order expires, Microsoft and Activision Blizzard can close the deal.

"The District Court's ruling makes crystal clear that this acquisition is good for both competition and consumers," Microsoft president Brad Smith said on Twitter. "We're disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward."

In the UK, the Competition and Markets Authority (CMA), Microsoft, and Activision Blizzard have paused legal proceedings to renegotiate the deal in order to get it across the line. However, the CMA has said that its final report on the deal "still stands" and that new proposals from Microsoft could lead to a new merger investigation.

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Written by Sean Carey

With a deep love for Xbox and achievements, Sean has committed to playing the best RPGs, racing games, and first-person shooters Xbox Game Pass and his precious free time will allow. Prior to joining TrueAchievements, Sean gained a degree in journalism from Solent University.