FTC appeals Microsoft-Activision lawsuit ruling

The American Fair Trade Commission has appealed the judge’s ruling in the case in which the FTC wanted to block Microsoft’s acquisition of Activision-Blizzard.

The FTC appealed to the United States Court of Appeals for the Ninth Circuit, as appears from the documentation. It was already rumored that the FTC was considering an appeal. It’s the last chance for FTC to stop the takeover before it happens. If a judge is subsequently right in an FTC case, the takeover has probably already been completed and both companies will have to split up again. Because with Tuesday’s ruling, Microsoft can in principle complete its takeover from July 15, after the takeover was temporarily paused pending a ruling.

American Judge Jacqueline Scott Corley ruled in favor of Microsoft in the FTC lawsuit on Tuesday. She stated, among other things, that the FTC has not sufficiently demonstrated that the takeover is bad for competition. According to the judge, there is therefore no reason to stop the takeover for the time being.

The FTC’s lawsuit revolved around a request for a preliminary injunction from the FTC. The American regulator currently has its own internal case against the takeover and therefore wants to block the takeover. The first hearings in that case are scheduled for August 2. In the meantime, Microsoft may complete the acquisition.

The British regulator CMA previously blocked the takeover, but after Tuesday’s ruling it is negotiating concessions with the two companies. It is unknown what that concession would look like and the CMA has not yet said it will accept or reject the proposal.

An overview of all Xbox game studios, including Activision Blizzard. Source: @Klobrille