Microsoft recently scored a huge win against the FTC after a judge ruled in favor of the tech giant in its attempt to acquire Activision Blizzard for nearly $70 billion. But, not one to take a loss lying down, FTC is now expected to file an appeal to the ruling.
On Tuesday, Judge Jacqueline Scott Corley, the same judge that threw out the gamer’s lawsuit, denied the FTC’s motion for a preliminary injunction. The motion was filed earlier this year and was meant to prevent Microsoft and Activision Blizzard from finalizing the $69 billion deal. The antitrust watchdog feared that Microsoft would close the deal even with the ongoing regulatory proceedings with the FTC and UK CMA.
According to a report from Bloomberg, the FTC has yet to officially appeal the ruling. However, the regulatory body could file an appeal “as early as Wednesday” according to a source familiar with the deliberations.
The FTC has a little bit of time to decide on an appeal as an earlier temporary restraining order prevents Microsoft from closing the deal with Activision Blizzard. The TRO expires on Friday after 11:59 PM PT. The FTC has not commented on the decision and its next moves.
Microsoft is pressed for time to close the deal with Activision Blizzard. The parties need to finalize the deal before the July 18 deadline expires. The terms of the deal would need to be renegotiated if the merger isn’t finalized by the deadline.
A spokesperson for Microsoft referred to an earlier statement by company president Brad Smith who said that they “hope other jurisdictions will continue working towards a timely resolution. As we’ve demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns.”
Experts believe that the FTC has an uphill battle in appealing the decision according to antitrust scholar Daniel Crane of University of Michigan Law School. In an interview with Reuters, Crane explained that the appeal could come down to an “analysis of the factual record.”
“A lot of the power of the opinion on appeal comes down to an analysis of the factual record,” Crane said. “The FTC may have difficulty on appeal establishing that fact – without which the case as they framed it goes away.”
Microsoft will still have to tackle its appeal of the UK CMA’s decision to block the deal. The UK regulator has paused legal proceedings and plans to consider proposals from Microsoft to address concerns that the CMA has raised in its decision.
