Hit the wall again! FTC suspends internal trial in Microsoft acquisition Activision Blizzard case
On July 21, the U.S. Federal Trade Commission (FTC) suspended an internal trial over Microsoft's $69 billion takeover of Activision Blizzard, a move that would open the door to potential settlement talks.。
On July 21, the U.S. Federal Trade Commission (FTC) suspended an internal trial over Microsoft's $69 billion takeover of Activision Blizzard, a move that would open the door to potential settlement talks.。
Previously, the FTC had been attacking and blocking the deal.。
In an effort to block the deal, the FTC previously appealed to the District Court for a court injunction against Microsoft's acquisition of Activision Blizzard.。But last week, Judge Jaqueline Scott Corley of the U.S. Court of Justice in San Francisco ruled that the FTC had not provided evidence to prove its claim that the acquisition would harm competition in the gaming industry.。Eventually a San Francisco court refused to issue an injunction and ruled that the deal could go ahead.。
In addition, the FTC also appealed the case to the FTC's internal administrative law judge, and the trial is scheduled for August 2.。
On July 18, Microsoft and Activision Blizzard asked the FTC to withdraw the case that was tried in its administrative court in August.。Because under the agency's rules, after losing a lawsuit in federal court to prevent the merger of the two companies, the FTC must drop the lawsuit at the request of the two companies。
In a motion posted on the FTC's website on July 19, the companies said withdrawing the case was both mandatory and in the public interest.。"The District Court has fully considered the FTC's claims and found that the FTC is unlikely to succeed on the basis of these claims due to multiple independent and substantial grounds."。"
On July 20, by order of FTC Secretary April Tabor, the agency suspended the lawsuit.。
Once the case is withdrawn, Microsoft and Activision Blizzard can seek to persuade the FTC's commissioners to accept the settlement or drop their opposition to the deal altogether.。The FTC is appealing a federal court ruling last week that upheld the deal, but the appeals court declined to halt the Microsoft takeover while it appeals.。
It is worth noting that even if the deal is finally completed, the FTC will have the option to restart its internal case after the deal closes.。In general, however, the FTC usually dismisses the case if it loses in federal court.。
The original deal deadline for Microsoft and Activision Blizzard was July 18, but the two companies have extended the acquisition agreement by three months to October 18 to allow more time to negotiate with the UK Competition and Markets Authority (CMA), which opposes the agreement.。
The CMA vetoed the deal in April, citing concerns about its potential impact on the cloud gaming market.。Following the US judge's ruling, however, the CMA and Microsoft said they had jointly applied for a stay of the hearing while they looked for ways to resolve their differences so the deal could go ahead.。Microsoft President Brad Smith said in a statement that the company is seeking to modify its deal "in a manner acceptable to the CMA."。
Microsoft prepares to submit an updated acquisition proposal to CMA。After the filing, the CMA will make a decision by August 29, but for now the regulator aims to make a ruling as soon as possible.。At a hearing this week, the CMA said it and Microsoft are confident the company can address its concerns.。
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