Microsoft receives historic decision

Microsoft, maker of the Xbox, one of the best-selling game consoles. Photo: Reuters .

On May 7, the US Federal Trade Commission (FTC) failed in its appeal to block Microsoft's $69 billion acquisition of Call of Duty developer Activision Blizzard.

In 2023, while the lawsuit over the 2022 acquisition was still under review, the FTC asked for a temporary restraining order to prevent the companies from completing the deal. The agency argued that Microsoft, the maker of the Xbox, would buy Activision, which could block rivals to its consoles and other gaming services.

“With control of Activision, Microsoft will have greater ability and incentive to withhold or degrade content in ways that significantly harm competition, including on product quality, price, and innovation,” the FTC said in its complaint.

The FTC also filed its own objections to the deal through an internal administrative proceeding. That process was put on hold in 2023, under the administration of President Joe Biden.

A district court judge denied the request. The FTC filed an appeal just a day after the ruling, arguing that the court applied too strict a standard when deciding whether to issue a temporary restraining order.

So far, the three-judge 9th Circuit Court of Appeals based in San Francisco has upheld the lower court's ruling, according to Reuters .

The judges said the FTC failed to provide evidence that it was likely to prevail in its case that the merger would limit competition.

The acquisition of Activision Blizzard is the largest ever in the video game industry, and the deal has faced intense regulatory scrutiny in several other international markets.

Activision Blizzard is one of the largest video game companies in the world , owning famous titles such as World of Warcraft, Diablo, or Call of Duty. The company was founded in 2008 after two major companies in the industry, Activision and Blizzard Entertainment, merged.

Source: https://znews.vn/microsoft-nhan-quyet-dinh-lich-su-post1551779.html