Microsoft prevails in a lawsuit filed by the FTC. Learn more about the court's decision, what it implies for consumers, and how the UK's CMA will address it.
Microsoft Wins FTC Court Case
Merger Between Microsoft and Activision Blizzard Pushes Through
Microsoft, the second largest company in the world, is making a serious attempt to acquire Activision Blizzard. However, the Federal Trade Commission (FTC) has filed a case against Microsoft, raising worries about potential monopolistic dominance in the gaming industry.
Both sides made their cases in the courtroom in California, where the case was being heard. After some deliberation, the judge approved Microsoft's acquisition of Activision Blizzard, citing promises made by the computer giant to keep Call of Duty and other well-known Activision Blizzard games available on several platforms. This choice may send massive ripples throughout the video game industry, changing the landscape.
California Judge Ruled in Favor of Microsoft
The California judge overseeing the case, Judge Jacqueline Scott Corley, had carefully considered the justifications brought forth by the FTC and Microsoft. In the end, the judge decided in Microsoft's favor, approving their purchase of Activision Blizzard.
Microsoft's dedication to maintaining cross-platform compatibility, ensuring that Call of Duty remained available on PlayStation and other gaming systems, was a significant component in the judge's judgment. This commitment was considered a way to promote competition within the video gaming industry and allay FTC's worries about possible power consolidation.
Though the judge has approved the transation, the FTC can still appeal her ruling. The FTC has yet to state whether it intends to appeal, however. If the judge's decision is upheld, Microsoft can complete the acquisition of Activision Blizzard, which would be a significant addition for Microsoft in the gaming industry.
Microsoft - Activision Blizzard Merger in the UK
Separately, Microsoft and Activision Blizzard have temporarily ended the legal dispute in the UK so that they may negotiate. During this intermission, the arrangement may be altered to resolve issues brought up by the Competition and Markets Authority (CMA) about cloud gaming. The parties involved seek to clear the way for a more straightforward acquisition procedure and Microsoft hopes to win regulatory approval in the UK by allaying these worries.
Source:
FTC vs Microsoft Preliminary Injunction Opinion
