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Microsoft is closing in on its proposed $69 billion acquisition of Activision Blizzard—the company is celebrating another victory, following the conclusion of a crucial court case against the US Federal Trade Commission (FTC). Both parties were recently engaged in five days of arguments and deliberation—yesterday Judge Jacqueline Scott Corley's final ruling stated: Microsoft's acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It made an agreement with Nintendo to bring Call of Duty to Switch. And it entered several agreements to for the first time bring Activision's content to several cloud gaming services."
The lady justice continued: "This Court's responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED."
Microsoft President and Vice Chair, Brad Smith, released his own statement regarding the victory: "We're grateful to the Court in San Francisco for this quick and thorough decision and hope other jurisdictions will continue working towards a timely resolution. As we've demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns."
Xbox boss, Phil Spencer was also in a jubilant mood: "We're grateful to the court for swiftly deciding in our favor. The evidence showed the Activision Blizzard deal is good for the industry and the FTC's claims about console switching, multi-game subscription services, and cloud don't reflect the realities of the gaming market. Since we first announced this deal, our commitment to bringing more games to more people on more devices has only grown. We've signed multiple agreements to make Activision Blizzard's games, Xbox first-party games and Game Pass all available to more players than they are today. We know that players around the world have been watching this case closely and I'm proud of our efforts to expand player access and choice throughout this journey."
Microsoft is clear to complete the deal ahead of a July 18th deadline, but proceedings will be complicated by Britain's blocking of the merger. The UK Competition and Markets Authority (CMA) is now the final hurdle, and all involved seem to be open to further discussions. Smith issued a second statement that outlined renewed negotiation efforts: "In order to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest."
Spencer is also ready to hammer out terms with the UK anti-trust body—in a memo sent to Microsoft employees he wrote: "After today's decision, we are turning our focus to the UK. As you may be aware, a few months ago, the UK Competition and Markets Authority recommended that the deal be prohibited. We disagree with the CMA's concerns and have challenged its decision on appeal. At the same time, however, we are considering how the transaction might be modified to address the CMA's concerns in a way that is acceptable to the CMA. In order to prioritize work on potential options, Microsoft and Activision have agreed with the CMA that pausing the appeal now would be in the public interest, and both we and the CMA have made a joint submission to the Competition Appeal Tribunal to this effect."
View at TechPowerUp Main Site | Source
The lady justice continued: "This Court's responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED."
Microsoft President and Vice Chair, Brad Smith, released his own statement regarding the victory: "We're grateful to the Court in San Francisco for this quick and thorough decision and hope other jurisdictions will continue working towards a timely resolution. As we've demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns."
Xbox boss, Phil Spencer was also in a jubilant mood: "We're grateful to the court for swiftly deciding in our favor. The evidence showed the Activision Blizzard deal is good for the industry and the FTC's claims about console switching, multi-game subscription services, and cloud don't reflect the realities of the gaming market. Since we first announced this deal, our commitment to bringing more games to more people on more devices has only grown. We've signed multiple agreements to make Activision Blizzard's games, Xbox first-party games and Game Pass all available to more players than they are today. We know that players around the world have been watching this case closely and I'm proud of our efforts to expand player access and choice throughout this journey."
Microsoft is clear to complete the deal ahead of a July 18th deadline, but proceedings will be complicated by Britain's blocking of the merger. The UK Competition and Markets Authority (CMA) is now the final hurdle, and all involved seem to be open to further discussions. Smith issued a second statement that outlined renewed negotiation efforts: "In order to prioritize work on these proposals, Microsoft and Activision have agreed with the CMA that a stay of the litigation in the UK would be in the public interest."
Spencer is also ready to hammer out terms with the UK anti-trust body—in a memo sent to Microsoft employees he wrote: "After today's decision, we are turning our focus to the UK. As you may be aware, a few months ago, the UK Competition and Markets Authority recommended that the deal be prohibited. We disagree with the CMA's concerns and have challenged its decision on appeal. At the same time, however, we are considering how the transaction might be modified to address the CMA's concerns in a way that is acceptable to the CMA. In order to prioritize work on potential options, Microsoft and Activision have agreed with the CMA that pausing the appeal now would be in the public interest, and both we and the CMA have made a joint submission to the Competition Appeal Tribunal to this effect."
View at TechPowerUp Main Site | Source
