FTC to appeal ruling to block Microsoft-Activision deal
By ForGeeks The US Federal Trade Commission (FTC) said on Wednesday it would appeal a US court ruling allowing Microsoft to acquire gaming giant Activision Blizzard for nearly $70 billion. It is likely to be the FTC’s last chance to block the merger before an injunction blocking the deal expires this weekend.
An injunction against the deal is expected to expire this weekend.
The notice of appeal was filed in U.S. District Court in San Francisco on Wednesday night. The FTC will have to convince the appeals court that the district court this week made an erroneous ruling. The court found that the FTC had not presented sufficiently compelling evidence that the merger would harm consumers by restricting their choices.
The FTC’s appeal will be based on the FTC’s failure to show that the merger would harm consumers by restricting their choices.
Microsoft scored a major victory over the FTC on Tuesday when a federal court denied the FTC’s request to temporarily block the tech giant from acquiring Activision Blizzard. An Activision Blizzard spokesman said the company is “confident that the U.S. will remain among the 39 countries where the merger can be finalized” and hopes to “once again reaffirm the strength of our arguments in court.”
Under the Biden administration, the FTC actively sought to limit large corporate mergers. However, it has been largely unsuccessful. The deal between Microsoft and Activision Blizzard was the biggest litmus test for the FTC.
The deal between Microsoft and Activision Blizzard was the biggest litmus test for the FTC.
