US Regulator Clears Path for Microsoft to Acquire Activision Blizzard

The US Federal Trade Commission's attempt to block Microsoft's $69 billion acquisition of Activision Blizzard has been rejected, allowing the deal to proceed. The FTC had sought a temporary injunction pending the outcome of its case to stop the acquisition, scheduled for August. However, Judge Jacqueline Scott Corley's decision enables Microsoft to finalize the acquisition before its July 18 deadline, avoiding potential penalties. The deal remains stalled due to opposition from the UK's Competition and Markets Authority. The FTC views the merger as a threat to competition in cloud gaming, subscription services, and console markets, and will announce its next steps soon. Activision Blizzard CEO Bobby Kotick believes the merger will benefit consumers and workers by promoting competition, while Microsoft President Brad Smith expressed gratitude for the swift decision and hopes other jurisdictions will follow suit. Microsoft aims to expand its presence in mobile and PC gaming markets through the acquisition, but critics fear the company may limit its popular titles, including Call of Duty, to the Xbox platform. The UK regulator's concerns about Microsoft's potential dominance in the game streaming market have led to an appeal by Microsoft and Activision Blizzard. Following the US court decision, Microsoft is refocusing on addressing the UK regulator's concerns, considering modifications to the transaction to alleviate these concerns and prioritizing proposals to this effect.