FTC Considers Appeal in Microsoft-Activision Deal
The Federal Trade Commission (FTC) is reportedly considering an appeal after a judge denied its request for a preliminary injunction to block the $68.7 billion deal between Microsoft and Activision Blizzard. A source familiar with the matter confirmed to CNBC that the agency is leaning towards an appeal, although a final decision has not been reached. If the appeal is not successful, the temporary restraining order preventing the deal from closing will expire on Friday.
The FTC’s attempt to block the deal was denied by U.S. District Judge Jacqueline Scott Corley, who ruled against granting a preliminary injunction. Had the injunction been granted, the parties would have been unable to close the deal until the conclusion of the FTC’s internal administrative proceeding, which is expected to take place later this summer.
The agency’s potential appeal comes as the deal deadline of July 18 approaches. The parties are also facing opposition from the U.K.’s Competition and Markets Authority, but the agency has agreed to stay the litigation following the U.S. ruling in order to consider proposals to restructure the deal.
Microsoft Vice Chair and President Brad Smith expressed hope that other jurisdictions will work towards a timely resolution. He emphasized Microsoft’s commitment to addressing regulatory concerns and working collaboratively throughout the process.
The FTC declined to comment on the matter. The agency will need to act swiftly if it decides to appeal, as it will be racing against the clock to meet the deal deadline.
CNBC’s Steve Kovach contributed to this report.
Watch: What the blockbuster Microsoft and Sony deals mean for the future of gaming
How might the potential appeal by the FTC affect the July 18 deadline for closing the deal between Microsoft and Activision
FTC May Appeal Judge’s Decision on Microsoft-Activision Deal
The Federal Trade Commission (FTC) is reportedly considering appealing a judge’s decision to deny its request for a preliminary injunction to block the $68.7 billion deal between Microsoft and Activision Blizzard. A source familiar with the matter has confirmed that the agency is leaning towards an appeal, although a final decision has not been made. If the appeal is unsuccessful, the temporary restraining order preventing the deal from closing will expire on Friday.
The U.S. District Judge Jacqueline Scott Corley denied the FTC’s attempt to block the deal by ruling against granting a preliminary injunction. Had the injunction been granted, the deal’s closure would have been delayed until the conclusion of the FTC’s internal administrative proceeding, expected to take place later this summer.
As the July 18 deadline for the deal approaches, the parties also face opposition from the U.K.’s Competition and Markets Authority. However, the agency has agreed to halt litigation following the U.S. ruling to evaluate proposals for restructuring the deal.
Microsoft Vice Chair and President Brad Smith expressed optimism that other jurisdictions will work towards a timely resolution. He emphasized Microsoft’s commitment to addressing regulatory concerns and collaborating during the process.
The FTC has chosen not to comment on the matter. If it decides to appeal, the agency will need to act quickly to meet the deal deadline.
CNBC’s Steve Kovach contributed to this report.
Watch: What the blockbuster Microsoft and Sony deals mean for the future of gaming
The FTC’s possible appeal in blocking the Microsoft and Activision Blizzard deal demonstrates the agency’s concern about potential monopolistic practices. It highlights the need for thorough scrutiny in order to maintain fair competition within the gaming industry.