The US Federal Trade Commission has reopened proceedings to block the Microsoft-Activision merger as it awaits a temporary injunction ruling from a federal appeals court, just weeks before the deal is expected to close.
US Federal Trade Commission
The US Federal Trade Commission has restarted its challenge to Microsoft’s $69 billion acquisition of gaming studio Activision Blizzard, two months after it was suspended.
Microsoft’s $69 Billion Acquisition
The FTC set a new schedule for hearings before an administrative law judge in what amounts to an in-house trial at the government agency in a filing released on Wednesday.
Renewed Legal Challenge
The renewed legal challenge comes after the UK’s Competition and Markets Authority (CMA) reversed its earlier decision to block the ruling.
And issuing a statement on September 22 indicating that Microsoft’s concessions would be sufficient for the regulator to approve the deal.
Meanwhile, the FTC is pursuing its challenge on two fronts: internally and in federal court. The FTC had initiated its own administrative proceedings to stop the Microsoft-Activision merger last December.
And while that process was ongoing, it asked the US District Court for the Northern District of California to issue a temporary injunction to prevent the merger from proceeding.
FTC Appealed The Decision
That request was denied, and the FTC appealed the decision in July to the Ninth Circuit Court of Appeals, which is expected to rule soon.
The FTC halted its own proceeding shortly after filing its appeal in Ninth Circuit court in July, but Wednesday’s order reinstates it.
The newly reinstated legal challenge is set to be heard 21 days after the Ninth Circuit rules on the injunction request appeal.
According to FTC Spokesperson
“The FTC continues to believe this deal is a threat to competition and we are placing this matter on the Commission’s Part 3 calendar ahead.
Of our ongoing federal court appeal, but our current focus is on the federal appeal process,” according to a statement issued by FTC spokesperson Victoria Graham.
This means that if the federal appeal is denied, the Activision deal can go forward.
But the FTC can potentially unwind it later through an internal proceeding with an administrative law judge. Meanwhile, Microsoft maintains a positive attitude.
To read our blog on “Merger date between Microsoft & Activision will be missed,” click here
