After much anticipation, the trial between the Federal Trade Commission (FTC) and Microsoft has finally reached a verdict. Judge Jacqueline Scott Corley has delivered a ruling in favor of Microsoft, denying the FTC’s request for a preliminary injunction.
In response to the ruling, FTC spokesperson Douglas Farrar expressed disappointment, stating that the merger poses a significant threat to open competition in cloud gaming, subscription services, and consoles. Farrar also announced that the FTC will be revealing its next course of action in the coming days, as they continue to fight to preserve competition and protect consumers.
Bobby Kotick, the CEO of Activision Blizzard, also released a statement, asserting that the merger will benefit consumers and workers by fostering competition and disrupting the dominance of established market leaders in the rapidly growing industry.
Expressing gratitude for the court’s decision, Microsoft president Brad Smith emphasized that the company stands behind the ruling.
Our statement on today’s decision: pic.twitter.com/jRDD8PhBeT
— Brad Smith (@BradSmi) July 11, 2023
Phil Spencer, the head of Xbox, also took to Twitter to share his reaction to the verdict:
1/We’re grateful to the court for swiftly deciding in our favor. The evidence showed the Activision Blizzard deal is good for the industry and the FTC’s claims about console switching, multi-game subscription services, and cloud don’t reflect the realities of the gaming market.
— Phil Spencer (@XboxP3) July 11, 2023
3/We know that players around the world have been watching this case closely and I’m proud of our efforts to expand player access and choice throughout this journey. END
— Phil Spencer (@XboxP3) July 11, 2023
Despite resolving their legal dispute with the FTC, Microsoft still faces regulatory challenges, including the UK’s Competition Markets Authority (CMA), which previously blocked the merger. Microsoft has appealed this decision, and a hearing is scheduled from July 28 to August 4.
The trial, which lasted four days, unveiled various revelations. Court documents disclosed a list of game developers that Xbox had shown interest in acquiring to fill content gaps. Additionally, PlayStation’s CEO, Jim Ryan, admitted that he did not consider the exclusivity of “Starfield” on Xbox as “anti-competitive,” while Microsoft CEO Satya Nadella expressed his lack of enthusiasm for console exclusives.
If you want a comprehensive recap of the trial’s events, check out our full coverage. We have also provided analysis pieces, breaking down each day of the trial in detail.
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