FTC to appeal judge’s decision to let Microsoft buy Activision
WASHINGTON听–听The US Federal Trade Commission (FTC) said on Wednesday it was听补辫辫别补濒ing a federal听箩耻诲驳别’蝉听ruling that Microsoft聽could go forward with its $69 billion purchase of “Call of Duty” maker听础肠迟颈惫颈蝉颈辞苍听Blizzard.
Microsoft‘蝉听聽in court on Tuesday, and a subsequent聽聽by Britain’s competition authority, brought the tech giant two steps closer to finalizing its tie-up with听础肠迟颈惫颈蝉颈辞苍,听惭颈肠谤辞蝉辞蹿迟‘s biggest deal ever.
Still, any outstanding regulatory hurdle makes it more likely that the agreement between听惭颈肠谤辞蝉辞蹿迟聽and听础肠迟颈惫颈蝉颈辞苍听will expire on July 18 without the deal having been completed. After July 18, either company will be free to walk away from the deal unless they negotiate an extension.
The听贵罢颁‘s court filing about the听补辫辫别补濒聽gave no details, which will go before the Ninth Circuit Court of听础辫辫别补濒s on the West Coast.
惭颈肠谤辞蝉辞蹿迟听said it would fight the听补辫辫别补濒.
“We鈥檙e disappointed that the听贵罢颁聽is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward,鈥听惭颈肠谤辞蝉辞蹿迟聽President Brad Smith said in an emailed statement.
The听贵罢颁聽declined to comment further on the notice of听补辫辫别补濒.
While the companies succeeded on Tuesday in shooting down an injunction in court against completing their deal, the judge left in place a stay preventing them from doing so until Friday, to give time to the听贵罢颁聽to听补辫辫别补濒.
The听贵罢颁聽may request a stay from the听补辫辫别补濒s court stopping the deal from closing.
In her opinion, US District Judge Jacqueline Scott Corley in San Francisco rejected the Biden administration’s argument the deal would hurt consumers by giving Xbox game console-maker听惭颈肠谤辞蝉辞蹿迟聽exclusive access to games including the best-selling “Call of Duty.”
Britain’s Competition and Markets Authority (CMA), which had opposed the transaction, said on Wednesday a restructured deal between听惭颈肠谤辞蝉辞蹿迟聽and听础肠迟颈惫颈蝉颈辞苍听Blizzard could satisfy its concerns, subject to a new investigation.
‘MAY’ OR ‘WILL’?
US legal experts 聽over whether the听贵罢颁聽had good grounds for an听补辫辫别补濒, with some saying that听补辫辫别补濒s courts tend to defer to judges on matters of fact, while others said Judge Corley may have erred in stating the standard for stopping a deal.
In her 53-page order, Corley said it was not enough for the听贵罢颁聽to argue “a merger might lessen competition – the听贵罢颁聽must show the merger will probably substantially lessen competition.”
Legal scholars questioned that standard, saying the U.S. antitrust law required the听贵罢颁聽to prove the proposed deal “may” harm competition, not that it “will.”
To address the听贵罢颁‘s concerns,听惭颈肠谤辞蝉辞蹿迟聽agreed to license “Call of Duty” to rivals, including a 10-year contract with Japan’s Nintendo Co., contingent on the merger closing.
When US antitrust agencies lose merger challenges in court,听补辫辫别补濒s are rare.
That said, the听贵罢颁聽appealed a ruling more than 10 years ago when it lost its fight against Whole Foods’ purchase of Wild Oats. The agency settled with the companies before the听补辫辫别补濒s court made a听诲别肠颈蝉颈辞苍. – Reuters
