A federal judge has rejected efforts by the Federal Trade Commission (FTC) to stop Microsoft’s acquisition of Activision. After it launched an administrative action to block the $69 billion deal in December.
U.S. District Judge Jacqueline Scott Corley wrote in her opinion that the government had not shown that the transaction would either substantially lessen competition in subscription and cloud gaming markets or its assertion that the combined firm would probably pull the “Call of Duty” franchise from Sony PlayStation.
The FTC has argued that the vertical merger would give Microsft too much control over top video game franchises. The judge’s decision has thus denied a preliminary injunction pending the completion of FTC administrative action.
Douglas Farrar, spokesperson for the agency, said in a statement they plan to soon announce their “next step to continue our fight to preserve competition and protect consumers”.
Phil Spencer, the CEO of Microsoft Gaming, said in a statement: “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.”
The transaction still faces opposition from the UK’s Competition and Markets Authority and has a long way to go before completion.
Source: Deadline
