Microsoft wins FTC court case to acquire Activision Blizzard

Microsoft has won its court case against the FTC to acquire Activision Blizzard, with a judge denying the regulator's request for a preliminary injunction.

Microsoft's court battle against the US Federal Trade Commission (FTC) has come to a close, with Judge Jacqueline Scott Corley officially clearing the way for Microsoft to acquire Activision Blizzard for $68.7 billion.

Judge denies FTC request to block Microsoft's Activision Blizzard deal

Microsoft wins FTC court case to acquire activision blizzard

Scott Corley said in the filing, "Microsoft’s acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It made an agreement with Nintendo to bring Call of Duty to Switch. And it entered several agreements to for the first time bring Activision’s content to several cloud gaming services.

"This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these
current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED."

This ruling now means that Microsoft can move ahead with its acquisition of Activision Blizzard ahead of the July 18 deadline, though the FTC does have three days to appeal the decision, and Microsoft would need to close the deal around the UK. Microsoft is currently appealing the CMA's decision to block the deal with a hearing set for late July.

In a statement responding to the news, Microsoft president Brad Smith said, "We’re grateful to the Court in San Francisco for this quick and thorough decision and hope other jurisdictions will continue working towards a timely resolution. As we’ve demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns."

On Twitter, Xbox boss Phil Spencer said, "We're grateful to the court for swiftly deciding in our favor. The evidence showed the Activision Blizzard deal is good for the industry, and the FTC's claims about console switching, multi-game subscription services, and cloud don't reflect the realities of the gaming market.

"Since we first announced this deal, our commitment to bringing more games to more people on more devices has only grown. We've signed multiple agreements to make Activision Blizzard's games, Xbox first-party games and Game Pass all available to more players than they are today.

"We know that players around the world have been watching this case closely, and I'm proud of our efforts to expand player access and choice throughout this journey."

With the FTC failing to get a win here and The European Commission approving the acquisition, all eyes now turn to the CMA in the UK. According to Brad Smith, Microsoft is now "considering how the transaction might be modified" in order to address the CMA's concerns." Smith says that Microsoft and Activision have agreed with the CMA "that a stay of litigation in the UK would be in the public interest and the parties have made a joint submission to the Competition Appeal Tribunal to this effect."

A CMA spokesperson said, "We stand ready to consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns set out in our final report."

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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.