In a thrilling turn of events, a federal judge has dealt a blow to the Federal Trade Commission’s attempt to halt Microsoft’s acquisition of Activision. Judge Jacqueline Scott Corley ruled that the government failed to provide sufficient evidence that the merger would significantly reduce competition.
“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,” Judge Corley stated in her opinion.
The FTC had filed a lawsuit in December to block the massive $69 billion deal, arguing that it would give Microsoft too much control over the most popular video game franchises. However, the judge’s decision denies a preliminary injunction until the completion of FTC administrative action. It remains to be seen whether the agency will appeal the ruling.
Notably, the UK’s Competition and Markets Authority also opposes the transaction. This adds another layer of complexity to the situation.
In response to the ruling, Phil Spencer, the CEO of Microsoft Gaming, expressed his satisfaction, stating, “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.”
Stay tuned for more updates on this exciting development.
