The Conclusion of Microsoft’s Battle: A Continuing War
The ongoing legal battle between Microsoft and the FTC has captivated the gaming world, with numerous twists and turns. While the focus has often been on unexpected announcements and rumors, it is important to remember that the fate of beloved franchises like “Call of Duty” hangs in the balance. In a significant victory for Microsoft, a California judge has ruled in favor of the tech giant’s pursuit to acquire Activision Blizzard.
In simpler terms, this means that Microsoft can now proceed with the acquisition before the July 18th deadline. However, they still face a hurdle in the form of the Competition and Market’s Authority (CMA) in the UK, as the acquisition had been blocked by them in April.
Despite the ongoing legal battles, Xbox leader Phil Spencer took to Twitter to express his gratitude for the court’s decision:
“We’re grateful to the court for swiftly deciding in our favor,” Phil Spencer tweeted. “We know that players around the world have been closely following this case, and I’m proud of our efforts to expand player access and choice throughout this journey.”
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
The FTC’s Persistence
The FTC’s concern over the impact of the acquisition on competition within cloud gaming and console markets led them to seek a block on the purchase. However, the judge ruled that the evidence presented did not support the claim that competition would be significantly reduced in the gaming industry.
“This Court’s responsibility in this case is narrow,” reads the decision. “The Court finds the FTC has not demonstrated a likelihood of prevailing on the claim that this specific vertical merger in the gaming industry will substantially lessen competition. On the contrary, the evidence suggests that consumers will have greater access to ‘Call of Duty’ and other Activision content.”
Gamesindustry.biz reports that the FTC will announce new measures to continue challenging Microsoft’s deal in the coming days.
