In a significant development, a California judge has denied the Federal Trade Commission’s (FTC) request for a preliminary injunction to halt Microsoft’s acquisition of Activision Blizzard, a major player in the gaming industry. The judge determined that the FTC had not presented sufficient evidence to demonstrate a high probability of success in its claim that the merger would significantly diminish competition.
One crucial factor in the judge’s decision was Microsoft’s commitment to maintaining the availability of the popular game Call of Duty on platforms like PlayStation and Nintendo Switch. The judge deemed these commitments as effective measures to alleviate any potential anticompetitive effects arising from the merger.
The ruling comes as a relief to Microsoft, which can now proceed with its acquisition plans for Activision Blizzard. However, the FTC still has the option to appeal the decision, and it has until July 14th to do so.
This legal battle between the FTC and Microsoft highlights the complexities and considerations involved in scrutinizing mergers within the gaming industry. The outcome of this case will have implications not only for the companies involved but also for the broader gaming market and competition dynamics within it. As the gaming industry continues to evolve and consolidate, regulatory authorities will remain vigilant in assessing the potential impact on competition and consumer welfare.
