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The game “Call of Duty”
Article informationAuthor, Peter HoskinsRole, BBC Economics Correspondent
7 hours ago
The Federal Trade Commission, the US competition watchdog, has lost a new attempt to temporarily block Microsoft from completing its deal to acquire the maker of the popular game “Call of Duty”.
The tech giant’s $69 billion (£52.6 billion) purchase of Activision Blizzard is the largest deal of its kind in the history of the gaming industry.
The deal has faced a series of legal challenges in the United States and divided regulators around the world.
The acquisition is scheduled to be completed by July 18.
However, the UK’s Competition and Markets Regulatory Authority announced that it would give itself another six weeks after the deadline to consider the deal.
The authority initially blocked the acquisition, arguing that it would impede competition in the emerging cloud gaming market.
But after a judge in the United States rejected attempts by the Federal Trade Commission to block the deal, the British regulator announced Wednesday that it was “ready to consider any proposals from Microsoft to restructure the deal.”
Now, the authority says it needs to wait until Aug. 29 to make a “comprehensive and appropriate examination” of the “detailed and complex” offers it has received from Microsoft, although it says it “aims to perform its duty as soon as possible and before that date.” “.
Late Thursday, US District Judge Jacqueline Scott Corley denied a request by the Federal Trade Commission to temporarily halt the Microsoft- Activision deal.
It is the latest ruling in a long-running legal battle between Microsoft and the Federal Trade Commission over the planned acquisition.
The FTC has since asked a different court for a “temporary hold” on the deal.
Any outstanding regulatory issues will increase the possibility that Microsoft and Activision will have to negotiate an extension to the deal’s closing date.
Without an agreement, either company would have the right to back out of the deal. If the acquisition does not go ahead, Microsoft will have to pay Activision termination fees of up to $3 billion.
Microsoft did not respond to the BBC’s request for comment.
Earlier this week, Microsoft President Brad Smith said the company was “disappointed that the FTC continues to pursue what has become a clearly weak case.”
“We will oppose further efforts to delay the ability to proceed with the transaction,” Smith added.
To address the FTC’s concerns, Microsoft has agreed to license its popular video game “Call of Duty” to competitors, including a 10-year contract with Japan’s Nintendo, if the deal closes.
EU regulators approved the deal, saying Microsoft had addressed their competition concerns.
2023-07-14 19:15:54
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