The Federal Trade Commission (FTC) isn't giving up without a fight, it seems. After losing its courtroom battle for a preliminary injunction against Microsoft's intended purchase of Activision Blizzard, the government body has officially filed an appeal.
The court's decision in favour of the Redmond corporation's acquisition essentially means it can proceed, although the UK's competition watchdog, the CMA, is still an obstacle. However, the FTC's appeal means it now has an opportunity to convince the appeals court the decision was wrong. A restraining order against action from Microsoft expires 14th July, meaning the company could continue as planned very shortly — unless the appeals court grants an extension to delay things further. The deal's deadline is 18th July.
In a statement to The Verge, Microsoft's Brad Smith is of course firmly against the FTC's appeal: "The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers," he says. "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."
As mentioned, this legal battle in the US isn't the only thing still in Microsoft's way; the CMA stands by its decision to block the deal, and negotiations between the corporation and the regulator are still at an early stage. And, lest we forget, Canada isn't particularly pleased about the merger either, though has yet to take any major steps against it.
This whole ordeal is far from over — we expect it'll be just as messy and exhausting until the deal is either completed or cancelled.
[source theverge.com, via videogameschronicle.com]
Comments 69
This isn't a dig at Push Square for reporting on it (I get it that's it's big news) but too be honest I'm sick of hearing about it.
I just wish they could come to a decision one way or the other.
I have a Series X but hardly use it, if the sale gets blocked I'll probably sell it but if it goes through I'll probably keep it as hopefully Game pass will be of better value.
At the moment PS extra is so much better with their monthly updates.
I can't remember the last time a game got added to game pass that I actually got excited about.
So boring....we all know it's getting done...just let it happen
this is like 1 of those games where the final boss fight has like a trillion phases.
everytime you think it's over,it's health bar refills 100 procent.
I'm happy they're making it difficult: fully expect it to go through but hoping that it will discourage such deals in the future.
Oh Jesus Christ, it continues 🤦
I do wish Microsoft wouldn't keep saying stuff like "this proves it's good for competition and consumers" though. No it doesn't. It just proves the FTC are bumbling idiots
It really is the case that never ends huh.
Although the deal will end up going through, I have to give credit to the FTC for actually doing their job unlike many other regulators around the globe, plus even if it's just stalling the deal and making Microsoft wait longer and longer, it's great to see.
If it ever succeeds, chapter 2 of this BS will be Antitrust filed against Microsoft.
I'd love for them to go through that whole 69 billion dollars ordeal, just to have the parent company being dismantled under Antitrust law.
I didn't see this coming, but I like it
Let's be honest, It's over.
Good to see multi-billion corporations having to work for their money. Sort of.
They’ll win by throwing money at the problem, but hopefully they’ll have to throw enough at it they won’t be in a hurry to do it again.
It’s highlighted how much direct political clout Microsoft have though, particularly in the US. Suddenly Deus Ex doesn’t seem so far-fetched.
Thing is, @UltimateOtaku91, how do Microsoft fund their case in Court? They get their money from the consumers. So this being dragged through the Courts will directly affect people that use Microsoft's products (Xbox or otherwise). And how do the FTC function? They exist on taxpayers money. So in the US, Xbox and Microsoft users are being hit in the pocket twice. It may not be a significant amount to the individual, but it all mounts up.
The FTC are only trying to stall the case in the hope that Microsoft and ABK cannot come to terms in the event that the original deal expires next week. However, it is entirely possible that this deal will now be fast-tracked and either be finalised this weekend or maybe Monday morning.
Ultimately, the FTC are only pursing this case because big tech is a personal target for Khan. She's hoping to make a name for herself. She has succeeded in that. Problem is, it's not been a good name. She has made herself, the FTC and to some extent the US look a laughing stock. Everyone, and I do mean everyone, knows their case is a flimsy as it could be, and yet they pursued it just because it was a personal agenda...
This is pointless. The FTC's lawyers were weak in court and made a very weak case. The Judge covered it all and did a good job with the facts she was given to consider.
What I wanted is irrelevant here. If you look at the case as it was presented, it came to the right conclusion with no evidence at all that we got the wrong outcome. FTC look like clowns. I could have written a better FTC case on the back of a beer mat... but I'd have still lost the case.
2 things:
1) I can't see the Court Of Appeals entertaining this, I expect them to laugh this appeal out of eye and earshot.
2) I don't expect the Court Of Appeals to make a public announcement on their decision to entertain the appeal (or not) in the next 1 and a bit business days left to go this week, prior to the deal supposedly closing on Monday, and possibly first thing Monday morning.
In short: last gasp posturing from FTC. I expect the deal to close as planned, request to appeal notwithstanding.
Once again expect a deluge of anti FTC propaganda from Microsoft,Activision Blizzard & their army of bot XB accounts & media friendly journos...I would hope they actually got an objective court of judges who's children DON'T work for either Microsoft or Activision Blizzard, or have shares in them or other conflicts of interests but in light of "gifts" bestowed by billionaires to US Supreme Court judges regularly hearing cases involving said billionaire companies,it seems like the average U.S. Judge these days have an interesting interpretation of "conflict of interest"!🙄
And Microsoft certainly have a long reach just looking at US Congress reps repeating the Microsoft narratives of a "Sony Monopoly" & "why is the FTC blocking a "Murican" company vs a Japanese one?"🙄
All that spin despite us literally hearing in their own documents the shopping list of more AAA's like Sega & Square Enix to push permanent exclusion from PS platforms,"Gamer" Phil Spencer cancelling PS games the moment the Zenimax ink dried despite his public rhetoric & even Gamepass contracts demanding exclusivity to its service & not appearing on ps plus thereafter!
It would be laughable if a multi trillion monopoly hadn't already hoodwinked so many they're interested in "increasing competition" when they're very actions condradict their words!
ATVI is being pulled from the stock exchange prior to open on Monday. MS and the CMA have obviously agreed to something, and the FTC probably isn't getting any emergency relief. The FTC had seven months to think about this, and utterly blew it.
@UltimateOtaku91 complete waste of tax payers money. They could of spent the last year working with Microsoft to make it even more beneficial and fair to consumers with remedies but they didn't want know it was just block block block from day one. Basically Lina khan trying to make a name for herself and her personal crusade with tech companies
I think we all anticipated one final hail Mary play by the FTC. I dont give them much chance of sucess at all. And atleast its not a long wait
They need the appeal to be granted (not just submitted) before midnight Friday, as that is when the TRO ends. I suspect Microsoft will close the deal Monday aslong as the appeal is not granted.
It's all so Lina Khan can try to save face when she faces Congress today. Its going to be a bad day today for her and the FTC
@Fiendish-Beaver That’s a good point. The only winners here are the lawyers. As in most legal disputes, the longer this drama goes on, the richer each side’s attorneys get.
@StrawberryTurtle
To be honest it's only the fact that I get Game Pass for free included in my EE mobile phone contract that I've still got it.
I'm thinking once I've had my fill of Forza Motorsport later this year I probably will get rid of it.
I don't play COD so thinking about it, if this deal does go through, I probably already own most of the other titles it be interested in anyway
Tony Hawk's, Crash Bandicoot etc
Waste of time and money.
I do find it funny when people just get totally apathetic over bad news they just want it to be over one way or another, even if it doesn’t benefit them or the world.
No finger pointing just an interesting observation
@StrawberryTurtle i assume they mean Gamepass plus the opportunities provided with Backwards Compatibility for older COD, Tony Hawks, Crash, Spyro games etc. Whether you like it or not, the benefits to Xbox gamers at least are pretty obvious…
@StrawberryTurtle I think it’s because they’re hoping the games go Xbox exclusive for bragging rights.
@Ravix "I do wish Microsoft wouldn't keep saying stuff like "this proves it's good for competition and consumers" though. No it doesn't. It just proves the FTC are bumbling idiots"
Actually the judge said in her verdict that the trial proved the deal was good for competition and consumers, that's why Microsoft are using the quote. It's exactly what the Judge said lol
What a waste of my tax dollars.
The FTC looks weak in court because the argument against the acquisition is weak.
What smoking gun evidence is there that says that this is bad deal for gamers across platforms?
Fact: Nintendo will be getting Call of Duty again
Fact: Microsoft is providing its game library to rival Cloud streaming services
Fact: Microsoft pledged under oath that Call of Duty will stay on PlayStation
Fact: There was nothing in any of correspondence within Microsoft regarding this deal that said Microsoft is trying to pull a fast one on the industry.
Where is the evidence to support the contrary? Any "only 10 years" argument is speculation, not fact.
I think it was best summed up by the judge when she said (copied from Eurogamer):
"Sony opposes the merger; its opposition is understandable," Judge Corley's ruling continues. "Before the merger Sony paid Activision for exclusive marketing rights that allowed Sony to market Call of Duty on PlayStation, but restricted Xbox's ability to do the same. After the merger, the combined firm [Microsoft and Activision Blizzard] presumably will not agree to such restrictions.
"Before the merger, a consumer wanting to play a Call of Duty console game had to buy a PlayStation or an Xbox. After the merger, consumers can utilise the cloud to play on the device of choice, including, it is intended, on the Nintendo Switch."
Summing this section of the case up, Judge Corley decided the deal was: "Perhaps bad for Sony. But good for Call of Duty gamers and future gamers."
I don't even think entering the other current IP under ABKs belt into the argument would have swayed the decision. Though I am sure Microsoft would have pledged those as well.
It's kind of laughable how many people cite the son of the Judge working for Microsoft as a reason that the Judge decided in favour of Microsoft. Microsoft employs approximately 220,000 individuals. I have no idea what Judge Corley's son does for Microsoft; whether he is a top official or an office worker just starting out, but seriously, for the anyone to think that a Judge to decide this case as an example of allegiance to her son is nothing short of sad.
First off, the FTC asked for Judge Corley. Microsoft asked for it to be a different Judge, as they did not want Corley. Corley herself offered to recuse herself, but the FTC insisted that she stay. Go figure!
I've read many a comment saying that she should not have sat on the case. To be honest, I agree. For the purposes of being seen as totally objective, it would have been better for it to have been someone else. But again, I reiterate, she was there only because of the FTC...!
What I also note is that whenever I read comments about a potential bias with Judge Corley (something that I highly doubt), it's always apparent that no one ever includes the obvious bias of the CMA, for whom Colin Raftery is the Senior Director of Mergers, and who used to work as a lawyer for Sony. Raftery is in a senior role at the CMA. He is actually in a position of influence. We don't know that to be the case for Corey's son.
Ultimately, many of those that comment on these articles will not have actually read and followed the FTC case as presented in Court. If they did they will see that the FTC presented an appallingly weak case, with expert witnesses that did not seem particularly knowledgeable at all. Judge Corley said of the FTC "(the FTC) has not raised serious questions regarding whether the proposed merger is likely to substantially lessen competition".
Ultimately, it was not the bias of the Judge that lost the case, it was the weakness of the case presented by the FTC...
To everyone who's saying this is boring and they're sick of it, maybe stop clicking on the articles and leaving comments. You can now use this time to focus on things that don't bore you.
"This whole ordeal is far from over"
I don't know, Monday does not seem that far away to me.
@StrawberryTurtle what is wrong with Gamepass? It can be a pretty huge money-saver. You sound extremely bitter. I’m not saying this is beneficial to Playstation players but what I am saying is it’s stupid to play dumb and pretend there are no benefits to Xbox players (besides… bragging rights apparently?).
And you’re saying it’s not pro-consumer since the games were already on Xbox but if they start hitting Switch surely that is a benefit. Maybe not to you but that’s not the point.
There are so many different angles to argue regarding the whole acquisition (either in favour or against) but blind fanboyism is just a waste of everyones time.
Good. The FTC may have not won their case, but they were right.
@UltimateOtaku91
If the FTC had done their job, their case would had at least had a chance at winning against MS. I see zero issue with this deal going through, and yet I could had still put a stronger case against the deal than the FTC did.
The FTC is not doing their job, they are just in a temper-tantrum and wasting taxpayer money.
@Member_the_game I’m the opposite. I have Extra and I see no value in it because I’ve already played every good games they put on it but on the other hand GP gives me new day one games (and to make it fair I’m not even talking about first party here) throughout the year that surpass the cost of one year subscription in value. So it’s not even close for me. But for new players Extra is amazing.
@Jamesblob
Very well said.
@TheCollector316
They lost their case. The only way the appeal will be accepted, and block extended, is if somehow they manage to prove some level of impropriety in Corley's decision. Chances of that are next to zero. They cant even raise the claim of the Judge's son working at MS given the Judge disclosed it and offered to recuse before the trial started, and at this point they would have to bring impeachment-level evidence to make that a valid point.
@Ouch
Haha. Exactly my thoughts. People who come to these articles to complain about these articles look foolish.
@Tharsman Well, she did come to the wrong conclusion for some unknown reason. Hopefully, we get the chance to find out why.
@TheCollector316 She came to the right conclusion based on all presented evidence. Like it or not, the FTC went in there with zero case. The entirety of their case fell apart the second Phil Spencer, under oath, swore he would keep CoD on PlayStation, and if that was not enough, it was further destroyed by MS upper management making it clear the deal was green-lit with the condition that it had to be 100% profitable day one, something that prevents the Xbox team from making CoD Xbox console exclusive.
The only reason, in the US, a temporary injunction would be granted is if there is imminent and irreparable damages, and that was all the Judge was here to judge upon.
The only potential damages the FTC was able to bring up were all focused on CoD exclusivity, but as the Judge stated: Sony still has a legally binding agreement with these games through 2024.
There are two whole years before there could be any damages, enough time for the FTC to actually go through proper channels, prove MS does intend to weaponize CoD (again, assuming Phil Spencer and Natia both lied under oath) and force a divestiture of all ABK assets.
And that is even assuming that CoD becoming Xbox exclusive could even indeed do irreparable damage to consumers and/or competition. Jim Ryan himself is on the record as stating they would be more than OK even if CoD became Xbox console exclusive.
TLDR: there is no evidence of any imminent, nor irreparable, damages. No judge would grant that injunction, at least not based on the continued CoD grounds.
Removed - inappropriate
I'm not native english speaker so I don't understand what happened. Can someone explain me what is written in the article???
@StrawberryTurtle Okay, and? People want to see here and blast based on speculation and feelings. I threw out the facts.
Plus, as an American tax payer, I’m paying for this garbage.
At this point it's just delaying the when
@GamingFan4Lyf If it get blocked, I personally say it’s worth it and it is the gov is doing its job. And if not, the problem is less the waste, and more the basic failure to perform its gov.
COD staying on PS is also not a fact. Not at all. There is a lot reason from history to assume COD will be gone after 10 years, which means MS is just lying through its teeth.
@Jaz007 The government did it’s job, and it failed to make a case based on lack if concrete evidence.
If Microsoft played the same wishy-washy approach it took to Bethesda, I’d be much more inclined to question things.
This has been different. The evidence supports it. That is the basis for the ruling in court: not an opinion that Microsoft is lying.
You all can disagree with the acquisition until you are blue in the face; but when it comes to legal proceedings, the arguments don’t hold up which makes this appeal useless.
Will this never end?!
FTC. Such a weak organization. I bet they lose the appeal.
@djlard
Brown stuff hit big whirly thing again.
I don't understand the sentiment that this is getting boring. I for one have loved all the scoops that have been coming out of badly redacted court documents, emails between the bigwigs of various companies coming into the public domain, etc.
Gaming is the biggest entertainment industry on the planet, yet is still one of the most secretive, and these insights into how the sausages get made have kept me glued to gamesindustry.biz and other sites as all this drama has unfolded.
Long may the drama run, as far as I'm concerned. It's fascinating.
@Sakai haha fair enough, but it still doesn't prove it definitively. It proves that a judge who's son works for MS thought that, based on the FTC's bumbling case 😁
@Ouch @TheCollector316
I'm assuming your comments were at least in part aimed at me because I said I was sick of hearing about it...
Let me clarify, and perhaps I could have worded it better myself in my original post.
I am genuinely interested in the story which is why I click on the articles, What I actually meant was that I believe the whole saga has dragged on for far too long.
One way or the other it needs to come to a conclusion quickly.
@jdv95 As Final boss MS has a lot of cash lying around.
@GamingFan4Lyf Then again they gave ticketmaster the green light and look how that turned out for the consumer. Microsoft is definitely holding back a lot of information.
@GamingFan4Lyf As a taxpayer you should be happy they don't say ok with everything on a whim. Look how great it goes for you with the "free internet", ticket master killing of all competition, food industry.
Not surprising, though I don't know if it'll change much. The FTC need a better lawyer that focuses on the clear anti-competitive stuff that has come out like Matt Booty's email and Spencer's lying about the future of Zenimax games instead of just focusing on Call of Duty. No one ever makes Phil Spencer answer the hard questions. They just let him obfuscate and accept it as hard fact.
@GamingFan4Lyf
Same here. It’s sickening how incompetent the FTC was in this case.
@Flaming_Kaiser
Trust me I want them to fight against stuff like this.
But I do expect competency. They botched the case from the get go.
The case was weak. And their lawyers were embarrassing.
When it’s my tax dollars I expect competence. If you are going to go with such a weak case with incompetent lawyers then don’t waste my money.
@Member_the_game
In this case you should be hoping that Microsoft loses and they instead focus on cultivating a strong lineup of first party games, rather than hoping they buy up another huge corpo just so you can get more games for "free".
@ATaco
That would certainly be my preference for them to lose.
But at this point it's dragged on for so long I just want a resolution one way or the other
"The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers".
Who the hell is stupid enough to buy this crap? So, Microsoft is willing to spend the biggest amount of money ever spent by any tech company to benefit the competition and consumers? WTF?
I don't know, man... The whole thing smells reeeal fishy. Money talks...
Lina Khan doesn't win cases. Waste of time and money.
And this is the woman who thinks she's going to reign in Amazon because she wrote some paper 5 years ago at Yale that people found intriguing.
Move on.
I think the FTC will win on appeal, IF the 9th Circuit Appeals court agrees to hear the case. The purpose of the preliminary injunction case wasn’t to rule on the validity of whether the FTC’s case would win or lose, but to determine if an injunction was proper to prevent the acquisition from taking place before the proper federal agency had an opportunity to hear the case. Corley screwed up. It doesn’t matter what the FTC did or didn’t do. Corley went beyond her scope.
Sadly the judge seemed to gobble up Microsoft's lies hook and sinker. I am not hopeful. I guess the ignorance of the market and Microsoft's previous acquisitions behaviour in other markets it's been in, plays a sad part in all this.
I am yet to see how this will mean CoD will get to more players in Microsoft's hands rather than being independent. Cause it most certainly will not.
I forgot all about this...where was i? Oh yeah 😴....
Since the day I was forced to download over 100GB to play the COD games, I lost interest in the series and nowadays Activision does not offer anything of great vakue and they will be tge biggest losers here since most COD players are on Playstation and I doubt they'll buy XBox to keep playing the game. Furthermore I'm sure that Sony is now hard at work creating a new IP to compete and maybe surpass COD
Fat lady has sang
It is over. The appeals court denied an extension of the TRO early this morning UK time.
@OrtadragoonX To be fair the US has so many monopolies in their what's one more.
It's a pity so many of the US get overseas to push their monopoly worldwide. Europe is naive when it comes to the US and allows everything.
We all watch the Chinese while the US is just as dangerous we need to make our own future.
@Flaming_Kaiser
Trust me I’m not a fan of our companies monopolistic behavior.
@OrtadragoonX It's finally over so who cares anyway.
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