Microsoft wins FTC fight to buy Activision Blizzard, CMA reconsiders
3 Min Read
Microsoft's proposed purchase was denied by the UK regulator in April, and the company was set to appeal the decision on July 28.
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The Activision Blizzard Booth is shown on June 13, 2013, during the Electronic Entertainment Expo in Los Angeles. (AP)
Microsoft has just won a separate judgment against the Federal Trade Commission (FTC) in a US federal court, and the CMA is the sole body remaining in the way of the Xbox maker's $68.7 billion takeover of Activision Blizzard.
According to the ruling by Judge Corley, the close examination of Microsoft's acquisition of Activision has paid off. Microsoft pledged in writing, in public, and in court to keep Call of Duty on PlayStation on par with Xbox for the next ten years. It reached an arrangement with Nintendo to bring Call of Duty on the Nintendo Switch. It also signed various deals to deliver Activision's content to many cloud gaming services for the first time.
Corley wrote that the court's role is limited in this matter, and it will assess whether, despite the prevailing circumstances, the merger should be halted—or perhaps terminated—pending the settlement of the FTC administrative case.
President of Microsoft Brad Smith expressed gratefulness to the judge's decision, hopeful that "other jurisdictions will continue working towards a timely resolution.”
Smith told The Verge that after the decision, the focus is now on the UK and considering "how the transaction might be modified to address those concerns in a way that is acceptable to the CMA."
Xbox CEO Phil Spencer, an important witness, also thanked the judge via Twitter, explaining that "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."
Bobby Kotick, Activision Blizzard’s CEO, expressed that the merger will "enable competition" and benefit consumers and workers.
FTC Spokesperson Douglas Farrar expressed disappointment in the outcome, citing a "clear threat" to the open competition in cloud gaming, subscription services, and consoles.
Farrar vowed to continue the "fight to preserve competition and protect consumers."
This comes after the FTC filed for the restraining order and preliminary injunction last month, which is the result of the announcement of the acquisition back in January 2022.
Microsoft announced that it was acquiring the video game producer for nearly $70 billion, possibly the priciest-ever tech acquisition, and this deal would see Activision Blizzard CEO Bobby Kotick walking with $390 million.
The acquisition will see changes for all gaming platforms, especially those on consoles other than Microsoft's Xbox, and even for mobile gaming.
CMA pauses the battle to negotiate
Microsoft and the UK's Competition and Markets Authority (CMA) have agreed to postpone its legal battle over the proposed Activision Blizzard acquisition to further examine the matter.
This comes after Microsoft's proposed purchase was denied by the UK regulator in April, and the company was set to appeal the decision on July 28. Microsoft has agreed to postpone its CMA appeal procedure in order to investigate how the transaction may be altered to address the CMA's cloud gaming concerns.
The CMA expressed to The Verge that it was “ready to consider any proposals from Microsoft to restructure the transaction in a way that would address the concerns set out in our Final Report.”
