The Federal Trade Commission could see the CMA getting out of control on trying to have Microsoft being unable to buy Activision Blizzard as unexpectedly, many within the UK government actually favored the transaction and made a preemptive move.
The FTC has filed an injunction to the Federal Court to avoid the closure of the Activision Blizzard transaction in a hasty and unexpected move so early this week.
Apparently, the rumors about Microsoft wanting to close the deal and going as far as tempting the alternative to circumventing the CMA’s denial by retiring Activision Blizzard from the UK market were reason enough for this reactiveness from the FTC.
The federal judge assigned to this case, will now need to decide on issuing a temporary restraining order (TRO) to restrict Microsoft from closing the deal for two weeks and a preliminary injunction that would prevent Microsoft from closing until the result of the FTC’s legal challenge.
An evidentiary hearing is scheduled for August 2nd, shortly after Microsoft’s appeal hearing is scheduled to start in the UK.
Early today, the second hearing from CAT attending the appeal from Microsoft against CMA practically went on favor of Microsoft as CMA was unable to have a legal standing to discard an expert opinion over their data that justified the ban, questioned not only by CAT, but also most of UK government agencies that has interest for a “UK Open For Business” and see the CMA’s attitude counter-productive.
FTC is not standing well also in public perception as initially, CMA denied being in constant contact with the FTC on how to handle the scrutiny, only being exposed that both US and UK agencies met for 26 times and both were well aware of what one is doing and vice-versa.
I always like to remind you that the rationale of the FTC is a “no big company getting bigger just because” policy after the Biden Administration took power and has been against this merger since day 1.
Microsoft President welcome the injunctions saying replying to The Verge:
“We welcome the opportunity to present our case in federal court.
We believe accelerating the legal process in the US will ultimately bring more choice and competition to the market.”
Microsoft is supposed to seal the deal on having the conglomerate of Activision Blizzard by the end of the current Fiscal Year and not exceeding beyond early summer, so, this mean that we are in the final track.