2023-07-11 16:11:57
Microsoft/Activision
Legal setback for the US authorities, decided to block the takeover
A request for immediate suspension of the transaction, emanating from the American competition authority, was refused by justice.
PostedJuly 11, 2023, 6:11 PM
The decision does not concern the merits of the case, which will be decided later.
REUTERS
A federal judge in California has dismissed the US competition authority, the FTC, for its request for an immediate suspension of the acquisition of the video game publisher Activision by Microsoft, inflicting a first setback on the US government in this case.
Microsoft proposals
The ruling, dated Monday and released Tuesday, relates only to the emergency proceeding filed by the FTC and not the merits of the case, which will be decided at a later date. A hearing is scheduled for the end of August in this case. The competition authority had launched this procedure in summary on the basis of press articles “suggesting that (Microsoft and Activision) were seriously considering finalizing the acquisition” despite the opposition of several regulators, according to the document filed mid- June.
In addition to the FTC, its British equivalent, the CMA, has vetoed this marriage in the name of competition in the “cloud gaming” market (video games played remotely, without downloading). Microsoft President Brad Smith nevertheless announced on Tuesday that the group would submit proposals to the CMA to try to “address (his) concerns” regarding the takeover of Activision “in an acceptable manner”.
$69 billion
“We are ready to consider any proposal from Microsoft to amend the transaction,” said the CMA in a reaction sent to AFP, while Microsoft chose to suspend the action brought before the British courts once morest the initial veto of the regulator. .
The European Commission has approved, in May, this takeover. It would make the IT giant the world’s third-largest player in the sector, with an operation valued at $69 billion, according to the estimate published when it was first announced in January 2022. he decision in summary proceedings, the reasons for the Californian judgment constitute a snub for the FTC and bode well for a difficult legal course for the regulator.
“Quick resolution”
“The FTC has not demonstrated that it is able to prove that this transaction was likely to weaken competition in this industry,” federal judge Jacqueline Scott Corley wrote.
“We are grateful to the San Francisco court for this quick and thorough decision and hope that other jurisdictions will continue to work towards a rapid resolution” of the disputes still in progress, reacted in a press release the president of Microsoft, Brad Smith. The official reaffirmed the group’s desire to “address the concerns of regulators”. Asked by AFP, the FTC did not respond immediately.
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