In a recent development, a U.S. Appeals Court has denied the Federal Trade Commission’s (FTC) request to halt Microsoft’s acquisition of Activision Blizzard.
The latter is the maker of popular gaming franchise, “Call of Duty.”
YOU MAY ALSO LIKE: Shein Faces Lawsuit For Copying Designs From Group Of Designers
The court’s decision removes a major obstacle standing in the way of Microsoft’s plans to expand its gaming business and finalize the $69 billion deal.
The FTC had also sought a similar pause from U.S. District Court Judge Jacqueline Scott Corley in northern California, but she rejected the request late Thursday.
The commission did not immediately respond to the court’s decision.
Brad Smith, President of Microsoft, expressed gratitude for the Ninth Circuit’s prompt denial of the FTC’s motion.
He viewed the ruling as a significant step toward completing the global regulatory reviews associated with the transaction, which is considered the largest in the history of the gaming industry.
While the deal has yet to receive approval in Britain, the recent rejection of the FTC’s appeal suggests that the commission may abandon its fight, as it has done in previous similar situations.
Earlier this year, in February, SurgeZirc NG learned that the FTC dropped its challenge against Meta Platforms’ acquisition of Within Unlimited after losing in a federal court.
The merger agreement between Microsoft and Activision is set to expire on July 18.
From that point onward, either company will have the freedom to terminate the deal unless they mutually agree to an extension.
In the UK, the Competition and Markets Authority expressed concerns about potential competition issues in the cloud gaming sector.
Microsoft recently submitted a “detailed and complex” new proposal to address these concerns, causing the authority to extend its deadline for a final ruling to August 29.
However, it aims to issue its decision as soon as possible.
In the United States, the FTC argued that the acquisition would harm consumers by potentially excluding rivals like Sony Group.
Microsoft responded by offering 10-year licenses to its competitors.
However, Judge Corley ruled on Tuesday that the deal was legally permissible under antitrust law and denied the FTC’s request for a preliminary injunction to allow the commission time to present its case before an internal FTC judge in August.
The FTC subsequently appealed the ruling to the Ninth Circuit Court of Appeals, which issued its decision on Friday.
The FTC emphasized in a court filing that the case extends beyond a single video game and console hardware, asserting that it pertains to the future of the gaming industry and the potential consolidation of subscription and cloud markets.
YOU MAY ALSO LIKE: Meta Blocks EU-Based Users From Accessing Threads Via VPNs
Meanwhile, Microsoft has reached an agreement with rival Nintendo to grant access to Activision’s “Call of Duty” contingent upon the deal’s completion.
Microsoft argues that such arrangements demonstrate its commitment to not monopolize games for its Xbox platform and subscription service.
 request to halt Microsoft's acquisition of Activision Blizzard.){kind=link}