Microsoft’s court battle against the US Federal Trade Commission has finally come to a close. California Judge Jacqueline Scott Corley denied the FTC request to block Microsoft’s Activision Blizzard deal which now makes the $68.7 billion acquisition more likely to happen.
Here is what the Judge stated in the filing:
“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.
“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.”
Head of Xbox, Phil Spencer posted a statement on Twitter saying they’re grateful to the court for swiftly deciding in Microsoft’s favor. The evidence showed the Activision Blizzard deal is good for the industry and their goal is to make Activision Blizzard’s games available to more players than ever before.
2/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.
— Phil Spencer (@XboxP3) July 11, 2023
President of Microsoft, Brad Smith put out a statement:
“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.”
This court battle is one to remember for Microsoft, it was an ongoing battle since December when the FTC announced a lawsuit to block the acquisition. The focus now shifts to the UK where Microsoft aims to modify the transaction in order to address the concerns that is acceptable to the CMA.
When this Microsoft x Activision Blizzard acquisition closes it would mean Call of Duty will eventually come to the next Nintendo console.
Source: The Verge