Microsoft beats FTC in court battle over Activision Blizzard deal, but the deal isn't done yet
Microsoft has won its court case against the Federal Trade Commission in its bid to purchase Activision Blizzard King.
Today, July 11, a US court ruled that the FTC has not provided substantial evidence to prevent Microsoft's acquisition of Activision Blizzard King from proceeding. That means that, while there are other obstacles to be overcome, most notably the CMA's block in the UK, the deal can close in the US. The temporary restraining order previously expiring July 18 has also been bumped up to end on July 14, though the FTC can still appeal.
"Notwithstanding the overwhelming evidence of the combined firm's lack of incentive to pull Call of Duty from PlayStation, the FTC insists it is probable the combined firm will do so because it is in its financial interests," the US court's ruling on the matter reads.
According to judge Jacqueline Scott Corley, the FTC's "lynchpin" was the opinion of Professor Robin Lee, an economist. Lee argued that the benefits of making Call of Duty exclusive to Xbox would outweigh the cost, but the court found that Microsoft would have no financial incentive to restrict Call of Duty from launching on PlayStation systems, a position Microsoft has long maintained.
"Microsoft executives have nonetheless committed publicly and under oath in court to continue to sell Call of Duty to Sony," the ruling reads, acknowledging Microsoft's many 10-year deals and assurances to keep Call of Duty open.
The FTC previously alleged that Microsoft acquiring Activision Blizzard would harm "innovation," but the court has found against this claim as well, arguing that the FTC also hasn't provided sufficient evidence that Call of Duty might release later on PlayStation devices than it would on Xbox and PC
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