Microsoft ‘disappointed’ as FTC officially files appeal on Activision Blizzard ruling

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The US Federal Trade Commission (FTC) has confirmed it will appeal a court’s decision to allow Microsoft to proceed with its $70bn acquisition of Activision Blizzard.

On Tuesday, Judge Jacqueline Scott Corley of the United States District Court for the Northern District of California denied the FTC’s motion for a preliminary injunction.

Had it been granted, the injunction would have blocked the $69 billion deal from being completed until the US regulator’s in-house court had a chance to rule on whether the merger hurt competition in the games industry.

Wednesday’s appeal from the FTC means it now has a chance to convince the appeals court that the ruling was incorrect.

However, a restraining order expiring on Friday, July 14 means that, barring an extension from the appeals court, Microsoft will be able to push through and close the deal this weekend.

“The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers,” Brad Smith, Microsoft’s president, said in a statement to The Verge.

“We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.”

Pending the outcome of the FTC’s appeal, the ruling removes one of the last major obstacles preventing the deal from being completed. The European Commission approved Microsoft’s acquisition of Activision Blizzard in May.

Earlier this week the UK’s Competition and Markets Authority paused legal proceedings with Microsoft and Activision Blizzard with a view to reaching an agreement over the game companies’ proposed merger, after the deal was cleared in the US.

However, while the regulator has said it’s ready to consider a restructured deal proposal, it has warned that this process may require it to carry out a fresh merger investigation.

[phaginator]

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[JayJ350]

In related news:

House Oversight Committee’s Jim Jordan (R-Ohio) is leading a panel that’s slated to question Khan Thursday on a slew of issues including alleged mismanagement of staff, an overly burdensome merger review process, and even alleged harassment of Twitter following its acquisition by Elon Musk, according to a 23-page Judiciary Committee memo obtained by The Post.

“Chair Khan is wasting agency resources in ill-advised and unlawful policy and enforcement efforts; Chair Khan is using her power to advance a woke agenda across corporate America,” according to the memo.

“Because of Chair Khan’s mismanagement, the FTC is weaker today than it was under the Trump Administration; Chair Khan continues to resist Congressional oversight,” the memo added.

While Khan was sworn in at the FTC just two years ago, Republicans have a lot of material they plan to throw at her, based on a review of the Judiciary memo.

GOP members of the Judiciary plan to slam her on the perilously low morale of staff. 36% of staff said they were motivated by FTC management in 2022 — down from 80% in 2020, according to an internal FTC survey. Just 44% respected FTC leadership in 2022 while 83% respected leadership as of 2020, the survey adds.

At the same time, the memo claims Khan has continued to resist Congressional oversight — having refused, for example, to provide relevant documents about the FTC’s reason for launching an investigation of Twitter that demanded the company “identify all journalists” who were given information about the launch of its “Twitter Blue” service.

In the wake of her botched attempt to block the Activision-Microsoft deal, some members are also preparing to question her on whether she wrongfully coordinated with foreign regulators or Democratic allies like Sen. Elizabeth Warren (D-Mass.), The Post has learned.

Head of the UK regulatory agency Competition and Markets Authority (CMA) Sarah Cardell recently confirmed the agency met with the FTC 26 times and exchanged 74 emails discussing the Microsoft-Activision case.

Under the antitrust law in the Hart-Scott-Rodino Act, the FTC is not allowed to discuss its case with the CMA once its commenced active litigation.

While Khan has said the agency “absolutely did not collude,” others are more skeptical.

“They can discuss timing but can’t talk about actual evidence they obtained from parties,” One former FTC Commissioner who spoke on the condition of anonymity said.

“How can we expect an American company to cooperate with enforcers if the agency is then freely sharing that information with other companies — they’re turning over the most confidential information they have including trade secrets, IP, and confidential plans?” the ex-commissioner added.

“The irony of this is that a company would be prosecuted if they handed over that info to other companies — it would be collusion,” the source explained. “But these agencies are allowed to do it.”

https://nypost.com/2023/07/12/lina-k...on-defeat/amp/

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[ScramFranklin]

Oh no no no no no no Xcel bros?! What now we can't moneyhat our way into having good games?!!

Idk 🤷‍♂️