The FTC’s lawsuit against Microsoft’s acquisition of Activision Blizzard has reached the following conclusion: Judge Corley denied the request for an injunction to temporarily block the settlement.
The verdict was unequivocal, and the judge sided with Microsoft and its strategy to expand the audience of Call of Duty and all Activision Blizzard titles. Especially the togata, examined all of the elements that emerged during the litigation and concluded that Microsoft’s move would not only limit competition, but would also allow many more people to enjoy the video games in question.
“Microsoft has committed in writing, publicly, and in court to bring Call of Duty to PlayStation on the same terms as Xbox for 10 years. He struck a deal with Nintendo to bring Call of Duty to the Switch. And it has struck multiple deals to port Activision’s content to various cloud gaming services for the first time” reads in document.
“For the reasons set out above, the Court finds that the FTC has failed to demonstrate that this vertical concentration could significantly impair competition in this particular sector. On the contrary, the evidence gathered shows that more consumers will have access to Call of Duty and other Activision content. Therefore, the request for an injunction is DENIED” completes the sentence.
The judge also considered the cloud gaming sector and Nintendo Switchchallenged by the FTC, which believes these services work alongside the Big N platform are not direct competitors in the console segment. Also, The FTC had also excluded the personal computer marketan aspect with which the judge agreed, given that they were platforms that were launched differently.
The FTC has already anticipated that it will use all means to monitor the consequences of this decision and to protect consumer rights. Conversely, the comments of some Microsoft executives were not long in coming and of course They warmly welcomed the San Francisco court ruling.
Our statement on today’s decision: pic.twitter.com/jRDD8PhBeT
— Brad Smith (@BradSmi) July 11, 2023
“We are grateful to the San Francisco Court for this quick and positive decision and hope other jurisdictions work to resolve the situation quickly.” he wrote BradSmithPresident of Microsoft.
“We thank the San Francisco Court for expressly ruling in our favor. There’s evidence that the Activision Blizzard deal is having a positive impact on the industry, and concerns about the FTC’s console switching, multiple subscriptions, and cloud don’t reflect reality” he wrote Phil SpencerXbox boss, on Twitter.
1/ We thank the court for the quick ruling in our favour. The evidence showed that the Activision Blizzard deal is good for the industry and the FTC’s claims about console switching, multi-game subscription services and cloud do not reflect the realities of the gaming market.
— Phil Spencer (@XboxP3) July 11, 2023
However, Microsoft’s fight is not over yet, as there is still one obstacle to the implementation of the deal: the British CMA. Indeed the British antitrust authorities has already spoken out against the takeover Activision Blizzard and the operating system giant have to wait for the outcome of the appeal process The first hearing is scheduled for July 18.
Microsoft could still complete the deal without the UK, but seems perfectly willing to delay closing it. Aside from that, The FTC has until July 14 to appeal the US judge’s rulingbut it seems that there are no conditions.
In summary, today marks a major victory for Microsoft, which can finally breathe a sigh of relief and is now on the verge of the largest acquisition in history in the technology sector. It only remains to wait for the UK’s next move, but it seems that Xbox can prepare to welcome Activision Blizzard King to its ranks.