[UPDATE] FTC Appeals Court Ruling on Allowing Microsoft to Acquire Activision Blizzard

The Federal Trade Commission (FTC) plans to appeal a judge's decision in California for its efforts to prevent Microsoft from acquiring the video game manufacturer Activision for $69 billion.

Intent to Appeal Court Ruling

The Federal Trade Commission (FTC) has announced its intention to appeal the recent ruling by a US federal court, allowing Microsoft to proceed with its acquisition of Activision Blizzard. According to a report from Bloomberg, FTC has filed a notice indicating its appeal of Judge Jacqueline Scott Corley's decision.

However, the specific arguments made by the regulator will be revealed once the complete appeal is submitted to the Ninth Circuit Court of Appeals. Earlier this week, Microsoft emerged in victory in a contentious battle against FTC after a federal judge rejected the regulator's request for a preliminary injunction.

With the agency opting to appeal Judge Corley's ruling, the regulator now seeks an emergency stay from the Court, which is necessary in order to extend the existing temporary restraining order that is scheduled to expire at 11:59 PM PT on Friday, July 14th. The timing of the appeals court's decision remains uncertain, and there is a possibility that it may not rule before the deal deadline on July 18th.

Judge Corly wrote in the ruling, "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."

If the preliminary injunction had been approved, The Verge reported that it would have imposed a temporary halt on Microsoft's completion of the Activision Blizzard acquisition until the conclusion of the FTC's administrative case against the company. This distinct legal challenge is still scheduled to commence on August 2nd.

Microsoft & Activision's Response

Microsoft's Vice Chair and President stated that the District Court made it clear that the acquisition will be good for both competition and customers. "We're disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward," he noted.

Meanwhile, Activision Blizzard's CCO and EVP of Corporate Affairs said that despite the appeals, the facts have not changed and they remain confident that the United States will be among the 39 countries where the merger can close.

The Washington Post reported that executives from Microsoft said in court that it did not intend to restrict customer access to video game titles, and the judge ultimately sided with the company in the ruling. However, the FTC, known for its vigorous pursuit of Big Tech companies during the Biden administration, intends to challenge the decision.