The FTC is making a third attempt to block Microsoft’s buyout of Activision Blizzard, as rumours suggest the UK’s CMA has given way.
There’s now a very good chance that Activision Blizzard, and all its games, will become property of Microsoft by the end of next week.
After having its request to block the deal denied, the Federal Trade Commission (FTC) was racing to have an appeal approved before next Tuesday. They were worried the appeals court wouldn’t have time to hear their argument this week, but they did… and they said no.
The FTC still isn’t giving up though, as they’re now asking for the Ninth Circuit Court of Appeals to put a ‘temporary pause’ on the acquisition, but there’s no indication that’s going to be any more successful.
With almost nothing now to stop them, Microsoft and Activision Blizzard are expected to go ahead with the acquisition and an announcement is likely on or before Tuesday, July 18 – the formal expiration date of the existing deal.
As happened in the UK with the CMA (Competition and Markets Authority), there is now increasing pressure from US politicians on the FTC to give up its fight.
‘The court not only rejected your assertion of a likely anti-competitive effect but found just the opposite,’ said Republican congressman Kevin Kiley, as reported by IGN.
‘The record evidence points to more consumer access. So why should Americans have faith in your judgment when this Biden-appointed judge says you’re so far off the mark?’
At the same time, the CMA – the only organisation worldwide to successfully say no to the deal – has extended the deadline for their final decision.
The moment the FTC lost the case in the US, the CMA said that it would talk again with Microsoft and is now considering a new submission, that they’ll have to make a decision on by August 29.
According to Bloomberg, Microsoft is floating the idea of selling off its cloud-based business in the UK to a third party, as that, rather than anything to do with traditional video games, was the sticking point for the CMA (and the thing the EU was most concerned about).
If that’s true then the acquisition should have no immediate effect on UK gamers, if it goes through this month, unless Activision Blizzard has to stop selling its games for a brief period before the new CMA decision.
There are still many uncertainties as to exactly what will happen, and when, but at this point it’s looking like Microsoft will get its way and that Activision Blizzard, Call Of Duty, and everything else will belong to them by the end of the year, if not the end of this month.
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