Microsoft wins US regulators in trial over acquisition of Activision Blizzard



This article, originally posted in Japanese on 11:22 Jul 12, 2023, may contains some machine-translated parts.
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In a trial filed by the US Federal Trade Commission (FTC) to block Microsoft's acquisition of Activision Blizzard, the court ruled to dismiss the FTC's allegations. The FTC may take this ruling to an appeals court in the future.

Microsoft wins FTC fight to buy Activision Blizzard - The Verge
https://www.theverge.com/2023/7/11/23779039/microsoft-activision-blizzard-ftc-trial-win

FTC Leaning Toward Appealing Microsoft-Activision (MSFT, ATVI) Court Loss - Bloomberg
https://www.bloomberg.com/news/articles/2023-07-11/ftc-leaning-toward-appealing-microsoft-activision-loss

In a trial disputed by Microsoft's acquisition of Activision Blizzard, California Judge Jacqueline Scott Corey dismissed the FTC's request for an interim injunction on July 11, 2023 and made a decision to accept the acquisition. I went down.

The trial's main focus is Microsoft's monopoly on the highly popular Call of Duty (CoD) series of game titles, hurting consumers and preventing healthy competition. It is a concern that it is not.

In response to this, Judge Corey stated in the ruling that Microsoft promised to 'develop the CoD series on PlayStation in the same way as Xbox for 10 years,' and that Switch will also provide the CoD series for the same 10 years. He pointed out that he had signed an agreement with Nintendo to continue.

Nintendo and Microsoft signed a contract to supply ``Call of Duty'' for 10 years, and depending on Sony's attitude, the possibility of a 10-year contract for PlayStation - GIGAZINE



'The court finds that the FTC has not shown a persuasive potential to argue that this vertical consolidation in the gaming industry could materially reduce competition,' the judge said. On the contrary, the evidence presented shows that consumer access to Activision content, including CoD, will increase. I accepted the claim.

In response to the ruling, Microsoft President Brad Smith said, ``We thank the San Francisco court for this swift and complete ruling, and hope other jurisdictions continue to work toward a timely resolution. We are,” he said in a statement .

In addition, Phil Spencer, head of Microsoft's Xbox business, said, ``We are grateful to the court for swiftly ruling in our favor. It shows that the deal to acquire Activision Blizzard is beneficial to the industry and that the FTC's claims do not reflect the reality of the gaming market.'



On the other hand, the FTC has not issued an official comment on the appeal, but overseas media Bloomberg said from a person familiar with the lawsuit, ``The FTC is moving in the direction of appealing this ruling.'' He reported that he may announce an appeal as early as the 12th. The FTC appeal time limit is 11:59 p.m. local time on July 14.

Experts are divided on whether the FTC can catch up in this legal battle. ``I think the judge evaluated the case by the wrong criteria, and I think the FTC should appeal,'' Robert Rand, a professor at the University of Baltimore Law School, told Bloomberg. Meanwhile, Doug Melamed, a Stanford University law professor who has worked for the Department of Justice's antitrust agency, said, 'It's very likely that the FTC will be able to convince an appeals court before the July 18 deadline for the acquisition. will be very low,” he said.

The UK Competition and Market Authority (CMA) is also waiting for Microsoft's acquisition of Activision, and Microsoft's President Smith has indicated that he will focus on persuading the British authorities in the future.

UK authorities block Microsoft's acquisition of Activision Blizzard, Microsoft immediately announces objection - GIGAZINE

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