Friday, May 23, 2025
Phonemantra
No Result
View All Result
  • Home
  • Mobiles
  • Tech News
  • Cars
  • Entertainment
  • USA News
  • Health
  • Cameras
  • Gaming
No Result
View All Result
  • Home
  • Mobiles
  • Tech News
  • Cars
  • Entertainment
  • USA News
  • Health
  • Cameras
  • Gaming
No Result
View All Result
Phonemantra
No Result
View All Result
Home Microsoft

Microsoft and Activision have successfully thwarted the Federal Trade Commission’s attempt to block their $69 billion deal

Microsoft and Activision have successfully thwarted the Federal Trade Commission’s attempt to block their $69 billion deal.

In a significant turn of events, Microsoft’s prospects in its contested takeover of video game company Activision Blizzard saw a substantial improvement on Tuesday. A federal judge, Jacqueline Scott Corley, ruled in favor of the companies, dealing a significant blow to the Federal Trade Commission’s (FTC) attempt to block the deal. Additionally, the U.K.’s antitrust regulator expressed openness to reversing its previous decision against the merger.

The FTC’s efforts to prevent the deal from proceeding have been a critical test of its ability to regulate competition in rapidly evolving technology markets, which is a central focus for agency Chair Lina Khan, an antitrust advocate appointed by President Joe Biden in 2021. The FTC initially challenged the deal in its internal court in December.

microsoft-activision deal update
Microsoft-Activision deal update

Although the ruling is a positive development for Microsoft and Activision, the situation is not entirely resolved yet. The Competition and Markets Authority (CMA) in the U.K. blocked the deal in April, citing concerns about competition in the cloud gaming market. However, following the U.S. ruling, the CMA stated that the companies’ appeal against their decision was put on hold while they engage in settlement negotiations. The CMA is open to considering proposals from Microsoft to restructure the transaction to address the concerns outlined in their Final Report.

During the five-day hearing in late June, the FTC sought to temporarily delay the deal until a full trial could be held in its administrative court, scheduled for August. However, Judge Corley did not find the FTC’s arguments convincing, stating that they had not demonstrated that the combined firm would likely remove Call of Duty from Sony PlayStation or substantially reduce competition in the video game library subscription and cloud gaming markets.

The FTC can appeal to the U.S. Court of Appeals for the Ninth Circuit, and they can continue with their in-house administrative case. However, the agency typically drops merger challenges after losing a preliminary injunction in federal court. Even if the FTC were to succeed in its in-house court, only a federal court could block the deal. Thus, if Microsoft and Activision reach an agreement with the CMA and close their deal, the FTC would face challenges trying to undo the merger years down the road.

Microsoft-Activision deal update

Despite the favorable ruling, discussions with the CMA are ongoing, and it remains uncertain what changes to the transaction will satisfy the UK regulator. The CMA has previously indicated that Microsoft’s deals with rivals, accepted by the European Commission during clearance, are insufficient, and selling the Call of Duty game franchise may be necessary. Microsoft has previously rejected this idea as a non-starter.

The ruling has implications for the video game market, with the FTC concerned that the acquisition of Activision would give Microsoft an unfair advantage. While the U.S. ruling favored the companies, the situation with the U.K. regulator adds complexity to the deal’s completion. The deadline for closing the deal is July 18, but an extension may be necessary to accommodate ongoing negotiations with the CMA.

It is still possible for the FTC to appeal, and one potential avenue is the interpretation of the Clayton Act, the U.S. antitrust law that governs anticompetitive mergers. Judge Corley’s interpretation may be seen as setting a higher bar for proving that a merger will substantially lessen competition compared to what the statute allows for.

  • 0Facebook
  • 0WhatsApp
  • 0Twitter
  • 0Pinterest
  • 0Reddit
  • 0Telegram
  • 0Skype
  • 0Facebook Messenger
  • Copy Link
  • 0Print
  •  shares

Related Posts

Amazfit Active 2 Review
Tech News

Amazfit Active 2 Review

May 22, 2025
Acer Swift Neo
Laptops

Acer Swift Neo with Intel Core Ultra 5 and OLED Display

May 22, 2025
Motorola Razr 60
Mobiles

Motorola Razr 60 India Launch Confirmed

May 22, 2025
TCL Launches Affordable 4K QD
Entertainment

TCL Launches Affordable 4K QD Mini-LED and QLED TVs in India

May 22, 2025
oppo k13x 5g
Mobiles

Oppo K13x 5G Specifications Leak Ahead of Launch

May 22, 2025
DoT’s Financial Fraud Risk Indicator
Internet News

DoT’s Financial Fraud Risk Indicator

May 22, 2025

Recommended Stories

Forbidden Siren

Forbidden Siren

October 16, 2024
state of illinois employee benefits

The Perks, State of Illinois Employee Benefits

October 30, 2023

Beats Powerbeats Wireless Headphones Introduce Glow-in-the-Dark Version

November 21, 2020 - Updated on December 8, 2022

Ads

Popular Stories

  • Food Allergies

    Food Allergies

    0 shares
    Share 0 Tweet 0
  • Coping with Diabetes During the Summer Heat

    0 shares
    Share 0 Tweet 0
  • Why Colon Health Should Be a Top Priority

    0 shares
    Share 0 Tweet 0
  • The Truth About Dieting

    0 shares
    Share 0 Tweet 0
  • The Importance of Speaking Up About Healthcare Decisions

    0 shares
    Share 0 Tweet 0
Phonemantra

© 2025 Phonemantra

Navigate Site

  • Our Team
  • Sitemap
  • Legal Disclaimer
  • Privacy Policy
  • Contact Us

Follow Us

No Result
View All Result
  • Home
  • Mobiles
  • Tech News
  • Cars
  • Entertainment
  • USA News
  • Health
  • Cameras
  • Gaming

© 2025 Phonemantra