Microsoft has achieved a significant victory in its bid to acquire Activision Blizzard for $68.7 billion, as the court case against the Federal Trade Commission (FTC) seeking to delay the deal has been dismissed.
While nothing is set in stone yet, this could have a knock on effect onto some fan-favourite titles availability on other consoles, as Blizzard is responsible for developing Call Of Duty, Overwatch, Diablo and more.
The decision, made by US district judge Jaqueline Scott Corley, means that Microsoft can proceed with the acquisition without temporary injunctions.
Corley’s ruling rejected the FTC’s argument that the deal would be anti-competitive. Sony and other opponents of the acquisition had voiced concerns about its potential impact on the industry. Sony has not yet responded to the FTC’s decision.
Corley stated, “The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets.”
In response to the ruling, Microsoft president Brad Smith expressed hope that other jurisdictions would work towards a swift resolution, emphasising the company’s commitment to addressing regulatory concerns collaboratively. Xbox boss Phil Spencer took to Twitter to reiterate the deal’s benefits for the industry and Microsoft’s dedication to expanding access to games.
Activision Blizzard CEO Bobby Kotick stated that the merger would benefit consumers and workers, promoting healthy competition in the rapidly growing gaming industry.
While the European Union has approved the deal, the Competition & Markets Authority in the UK has blocked it due to concerns about the cloud gaming market.
Microsoft had previously received approvals for the acquisition in over 35 countries before the FTC’s decision. The company has a deadline of July 18 to finalise the deal but will need to address the UK’s block. Microsoft and the FTC have put the appeal process on hold as they explore potential remedies to address regulatory concerns.
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