A judge in California has allowed Microsoft to proceed with its purchase of Activision Blizzard, a video game company, after several days of arguments. However, Microsoft still faces a separate legal case by the Federal Trade Commission (FTC) regarding antitrust concerns. The judge, Jacqueline Scott Corley, listened to both the FTC and Microsoft and decided not to grant the FTC's request to stop the merger for now.
Judge Corley stated that Microsoft's acquisition of Activision deserves careful examination due to its size. However, Microsoft made commitments to keep the popular game "Call of Duty" available on PlayStation consoles for ten years, as well as to bring the game to Nintendo Switch. Microsoft also agreed to make Activision's content available on various cloud gaming services. The judge found that the FTC did not provide enough evidence to prove that the merger would harm competition, and therefore denied their request to stop it.
Microsoft and Activision Blizzard reacted positively to the ruling, while the FTC expressed disappointment and stated that they would plan their next steps. The decision allows Microsoft to proceed with the acquisition before a deadline, but only if certain conditions are met, including negotiations with the UK regulator and appealing their decision to block the deal.
European regulators have already approved the merger, so Microsoft could proceed without the UK's involvement and without an injunction in the US. The FTC has the opportunity to appeal the judge's decision, but they may choose not to pursue the case further.
This ruling is a setback for the FTC and its chair, Lina Khan, who has been actively pursuing legal actions against large technology companies since taking office in 2021.
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