Microsoft Wins Court Battle with FTC, Clears Obstacle for Activision Blizzard Acquisition
The court battle between Microsoft and the FTC has concluded, with the tech giant emerging as the victor. This clears a significant obstacle for Microsoft's acquisition of Activision Blizzard in the US. The FTC had attempted to block the merger's approval in the US, but now Microsoft can proceed with the deal while awaiting approval in the UK.
The trial, which lasted several days, attracted attention due to the ongoing rivalry between Xbox and PlayStation. The FTC's concerns about diminished competition in the industry were the basis for their attempt to block the deal's approval.
News of the deal's approval in the US is expected to follow, with Sony likely to express its disagreement with the outcome. PlayStation president Shoei Yoshida provided testimony against the merger, expressing concerns about rival services like Game Pass and their impact on the industry.
The trial itself faced several controversies, including poorly redacted documents that inadvertently revealed the high cost of developing PlayStation games. Microsoft's own testimony, including CEO Satya Nadella's comments on console exclusives and the console wars, also attracted attention. Despite the embarrassing headlines stemming from Microsoft's testimony, the company is undoubtedly pleased with the court's decision.
While Microsoft's testimonies raised eyebrows, the company has a vested interest in ensuring the deal proceeds. Satya Nadella's comments about console exclusives and the console wars are unlikely to change the company's practices. Nevertheless, Microsoft is undoubtedly pleased with the court's decision, which increases the likelihood of the deal's approval in the US.
Microsoft has now shifted its focus to the UK, where the company is expressing its disagreement with the CMA's decision. It is considering modifications to address concerns. If the merger proceeds, Activision Blizzard workers would also benefit from this agreement.
The news of Microsoft's win in the court case against the FTC is currently trending on social media. The Communications Workers of America union, representing game workers, applauds the court's decision and has reached an agreement with Microsoft for a fair unionization process.
Check out the news that's trending on social media right now:
Microsoft has won its court case against the FTC, allowing the company to proceed with its acquisition of Activision Blizzard in the US. The merger was under scrutiny by the FTC, with concerns that it would lessen competition in the industry leading to the agency attempting to block the deal's approval via a lawsuit. However, the presiding judge has ruled in Microsoft's favor, denying the FTC's motion for a preliminary injunction.
This legal victory removes a significant obstacle for Microsoft, increasing the likelihood of the deal's approval in the US. The news comes just days after it was reported that Microsoft had shifted its focus to the UK, expressing its disagreement with the CMA's decision and considering modifications to address concerns.
The news of Microsoft's win in the court case against the FTC is currently trending on social media.
"The judge has issued a ruling denying the FTC's motion for a preliminary injunction," Microsoft says in a statement. "The ruling means the court has found that the FTC's allegations that the acquisition of PlayFab would violate the FTC Act are not supported by the evidence and that the motion for an injunction should be denied."
"It is important to note that this ruling does not impact the CMA's decision," the company adds. "We are in ongoing discussions with the CMA and remain confident that we can address their concerns and obtain clearance in the near future."
The news is currently trending on sites like Twitter and Reddit. The Verge has obtained the ruling from the presiding judge, which you can read below:
The FTC responded to Microsoft's win in a statement of its own, noting that the case is "ongoing."
