US Court Rejects FTC's Bid to Halt Microsoft-Activision Deal

In a significant blow to the Federal Trade Commission, its emergency appeal to block the impending $68.7 billion Microsoft-Activision Blizzard merger has been rejected by the Ninth Circuit Court of Appeal. This decision comes after a US District Judge denied the FTC's request for a preliminary injunction and an extension of a temporary restraining order, effectively ending the regulator's chances of preventing the deal from being completed before the July 18 deadline. If the merger is not finalized by then, Microsoft will be required to pay a $3 billion fee to Activision Blizzard and renegotiate the purchase price. Microsoft President Brad Smith welcomed the court's decision, stating that it brings the company closer to completing the deal after a lengthy process of global regulatory reviews. Although the FTC may still proceed with its administrative hearing scheduled for August, Microsoft and Activision Blizzard can petition for the challenge to be dropped on the grounds that it no longer serves the public interest. The acquisition's completion would then pave the way for the FTC to potentially sue for divestiture, such as forcing Microsoft to sell off the Call of Duty franchise, but this process would take several years. Meanwhile, Microsoft is working to address concerns from the UK's Competition and Markets Authority, which previously blocked the deal, with the aim of securing approval before August 29.