A California court sided with Microsoft and Activision Blizzard in a conflict with the Federal Trade Commission (FTC)
Judge Jacqueline Scott Corley denied the FTC‘s request to impose a preliminary injunction on Microsoft‘s purchase of Activision Blizzard.
The FTC can still challenge the judge’s decision, but the latter is considered unlikely, since the regulator has not taken such steps in similar cases before.
According to The Verge, the decision will allow the transaction to be completed before the deadline of July 18. But only if Microsoft is ready to ignore the decision of the British regulator — the Competition and Markets Authority of the United Kingdom (aka CMA).
Recall that in May, the CMA first imposed a ban on the transaction, and then issued a second ban prohibiting Microsoft and Activision Blizzard from investing in each other without obtaining the written consent of the department.
A hearing to challenge the first ban is scheduled in the UK for July 28. This is much later than the last date when the transaction should be completed.
As also noted on The Verge pages, “European regulatory authorities gave the go-ahead for the deal in May, so now Microsoft can technically close the deal without a ban from the UK and the US. However, this is a complex scenario, so we will most likely see Microsoft and Activision Blizzard temporarily renew their merger agreement.”
