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The US Federal Trade Commission (FTC) has begun its appeal against a recent court decision in favor of Microsoft’s purchase of Activision Blizzard.
The expected acquisition of Activision Blizzard by Microsoft has come under considerable scrutiny from governments around the world. Despite this, Microsoft won its battle with the FTC, with a federal judge ruling in favor of the legality of the acquisition. However, despite Judge Corley’s ruling, the FTC has filed a full notice of appeal, in an effort to move toward reversing the decision.
For the appeal to proceed, the Ninth Circuit Court of Appeals would need to issue an emergency stay to extend the temporary restraining order responsible for blocking the acquisition in the initial case. Although we can’t say for sure whether the Ninth Circuit will side with the FTC.
Meanwhile, on the other side of the Atlantic, Microsoft still has to contend with a decision by the UK government’s Competition and Markets Authority (CMA), which blocked the merger on the grounds that it would allow Microsoft to develop a gaming monopoly. Ironically, Microsoft’s own appeal against the CMA is ongoing in the UK court system.
Microsoft’s acquisition plans have received a warm reception in other parts of the world. The Chinese government approved the deal outright, while the European Union decided to approve the acquisition, albeit with some important caveats.
Publicly at least, Microsoft is confident that the FTC appeal will end up like the initial case. Microsoft Vice President and Chairman Brad Smith said that “the District Court’s decision makes it clear that this acquisition is good for both competition and consumers … We are disappointed that the FTC is pursuing a case that clearly has become a weaker case” (via The Verge).
Meanwhile, the ball remains firmly in the Ninth Circuit’s court.
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