In a significant development, a federal judge has dismissed the Federal Trade Commission‘s (FTC) attempt to delay Microsoft‘s $70 billion acquisition of Activision Blizzard. This ruling opens the possibility for the technology giant and the gaming company to proceed with their consolidation as early as this month. Judge Jacqueline Scott Corley, presiding over the U.S. District Court for the Northern District of California, concluded in her 53-page decision that the FTC failed to provide sufficient evidence that the merger would result in a substantial decrease in competition that would harm consumers. The judge denied the FTC’s request for a preliminary injunction, which sought to postpone the completion of the deal until the agency had an opportunity to challenge it internally.
A Setback for FTC’s Efforts to Scrutinize Major Tech Mergers
This court ruling represents a significant setback for the FTC’s ongoing efforts to increase its scrutiny of major technology mergers. The agency, led by Chair Lina Khan, has been advocating for a more rigorous approach to address the perceived anti-competitive behavior resulting from the enormous influence of Big Tech companies in commerce and communication.
While the FTC has filed lawsuits against Microsoft, Meta, and Amazon, it has faced challenges in making progress with its initiatives. One of the cases against Meta has been withdrawn, and the agency has experienced limited success so far.
Microsoft and Activision Respond Favorably to the Ruling
We’re grateful to the Court in San Francisco for this quick and thorough decision. The merger will enable competition rather than allow entrenched market leaders to continue to dominate.
Douglas Farrar, the spokesperson for the (FTC), expressed the following statement:
The agency is disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services and consoles. In the coming days we’ll be announcing our next step to continue our fight to preserve competition and protect consumers.
