LogIn"Your tax dollars at work," commented Blizzard's President on the appeal.
It appears that the legal dispute between Microsoft and the Federal Trade Commission (FTC) regarding Microsoft's proposed acquisition of Activision Blizzard will continue with a sequel. The FTC has announced its intention to appeal Judge Jacqueline Scott Corley's recent ruling, which denied the FTC's request for a preliminary injunction and approved the merger.
After facing defeat in court, the Commission has filed a notice of appeal, and it plans to submit a complete appeal detailing its arguments to the Ninth Circuit Court of Appeals at a later date. With the FTC opting to challenge Judge Corley's decision, it also requires the Ninth Circuit Court of Appeals to grant an emergency stay in order to extend the existing temporary restraining order (TRO), which is scheduled to expire on Friday, July 14th, at 11:59 PM PT.
"Notice is hereby given that Plaintiff Federal Trade Commission (FTC) appeals to the United States Court of Appeals for the Ninth Circuit from this Court's Opinion dated July 10, 2023 and entered on the Court’s docket on July 11, 2023 at ECF Docket Number 305 denying the FTC's request for a preliminary injunction pursuant to Federal Trade Commission Act § 13(b), 15 U.S.C. 53(b)," reads the notice.
In response to the FTC's decision to appeal the court's ruling, Microsoft's President Brad Smith expressed his disappointment, stating that they are saddened by the FTC's persistence in pursuing this "demonstrably weak case":
"The District Court's ruling makes crystal clear that this acquisition is good for both competition and consumers," Smith told The Verge. "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."
Activision Blizzard's CCO and EVP of Corporate Affairs, Lulu Cheng Meservey, and the President of Blizzard Entertainment, Mike Ybarra, also commented on the situation, with the former noting that "the facts haven't changed" and the latter stating that by prolonging the case, the FTC just burns more of the taxpayers' money:
It is also worth noting that the UK's Competition and Markets Authority (CMA), which had blocked the merger in April, has now expressed its willingness to suspend legal proceedings against Microsoft, stating that they are open to considering any proposals made by Microsoft for restructuring the transaction.
At the same time, the regulator also cautions that Microsoft's proposals could potentially trigger a fresh investigation into the merger. In a statement provided by the CMA, the regulator emphasizes that the discussions with Microsoft are still in the preliminary stages:
"Whilst merging parties don't have the opportunity to put forward new remedies once a final report has been issued, they can choose to restructure a deal, which can lead to a new merger investigation," reads the statement (via The Verge). "Microsoft and Activision have indicated that they are considering how the transaction might be modified, and the CMA is prepared to engage with them on this basis. These discussions remain at an early stage, and the nature and timing of next steps will be determined in due course. While both parties have requested a pause in Microsoft's appeal to allow these discussions to take place, the CMA decision set out in its final report still stands."
What do you think about the FTC's decision to appeal the verdict? When will the legal battle between the two finally see its conclusion? Tell us in the comments!
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