The ongoing battle between the Federal Trade Commission (FTC) and Microsoft continues to escalate as the FTC appeals the appeal, requesting the blocking of the acquisition until a decision is made. It appears that the main objective of the FTC is to extend the completion of the acquisition, surpassing the deadline set by Microsoft and Activision Blizzard for July 18.
The appeal by the FTC aims to complicate the whole operation by necessitating a revision of the agreement. The American antitrust has not only appealed the decision but also requested the blocking of the acquisition until the appeal procedure concludes. The court is expected to make a decision on this matter in the coming hours.
The timing of the court’s decision poses a challenge, as it may not be reached before the deadline set by Activision Blizzard and Microsoft. The acquisition could take place in the next few hours, with Activision Blizzard’s title potentially being withdrawn from the Nasdaq index early next week, hinting at an imminent takeover.
In essence, the acquisition may proceed before the court rules on the blocking request, irrespective of the outcome of the appeal. The FTC’s victory is not guaranteed and the situation remains uncertain.
The FTC has raised several key points against the court’s verdict in favor of Microsoft. It argues that Judge Corley, who presided over the case, did not follow the appropriate rules for preliminary injunctions as required by antitrust laws. Additionally, the FTC claims that the judge gave undue weight to the benefits for Game Pass users while disregarding the potential anti-competitive effects of the acquisition.
The FTC believes that the judge relied heavily on Microsoft’s proposed agreements for cloud gaming, neglecting the evidence provided by the FTC on Microsoft’s incentives to foreclose competitors.
The outcome of this battle remains to be seen as the issue unfolds in the coming hours.