Judge Rejects FTC Order, Microsoft And Activision Agree To Renegotiate With CMA

Microsoft and Activision agreed to postpone acquisition with CMA (photo: Activision)

JAKARTA - A judge has rejected a Federal Trade Commission (FTC) request for an initial order to prevent Microsoft from buying Activision Blizzard for 68.7 billion US dollars (Rp986 trillion).

"The responsibility of this Court in this case is narrow. It is to decide whether, regardless of current circumstances, the merger must be stopped and even possibly stop while waiting for the resolution of FTC's administrative action," wrote Immigration Judge Scott Corley in the decision, via Engadget.

"For the reasons described, the Court found the FTC has not shown the possibility of winning its claim that a special vertical merger in this specific industry could substantially reduce competition. On the contrary, the recorded evidence shows more consumer access to Call of Duty and other Activision content. Therefore, the motion for the preliminary order is rejected," he added.

Our statement on today's decision: pic.twitter.com/jRDD8PhBeT

— Brad Smith (@BradSmi) July 11, 2023

Our statement on today's decision: pic.twitter.com/jRDD8PhBeT

Responding to this decision, Microsoft's Vice Chairman and President Brad Smith expressed his gratitude to the San Francisco Court in a statement posted on Twitter.

"We thank the Court in San Francisco for this swift and thorough decision and hope that other jurisdictions will continue to seek a timely settlement. As we have shown consistently during this process, we are committed to working creatively and collaboratively to address regulatory issues." Smith wrote.

Corley decided that the FTC had until July 14 to get a suspension pending appeal from the Ninth Circuit Court of Appeals to delay further deals from closing. Otherwise, Microsoft and Activision will be able to close the deal, giving them enough time to do so before the July 18 deadline.

Along with this decree, Microsoft agreed to take a break from their legal battle to compromise with the British Competition and Market Authority (CMA).

Our statement on the mutual request with the CMA for a pause of our appeal in the UK: pic.twitter.com/8Aky2IJjxS

— Brad Smith (@BradSmi) July 11, 2023

Our statement on the mutual request with the CMA for a pause of our application in the UK: pic.twitter.com/8Aky2IJjxS

"After today's court decision in the US, our focus is now returning to the UK. Although we ultimately disagree with CMA concerns, we are considering how transactions can be modified to address the issue in a way CMA can accept," Smith said in a different post.

"To prioritize work on this proposal, Microsoft and Activision have agreed with the CMA that delaying litigation in the UK will be of public interest and the parties have made a joint filing for the Court Competition Appeal for this effect." close the statement.