FTC Files Appeal And Seeks Emergency Stay On Microsoft Merger's Restraining Order That Expires Tomorrow

Time is literally of the essence for both sides and the appeals court may not be able to realistically rule in time.

Michael Byrne
By Michael Byrne, Editor in Chief Posted:
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Activision Blizzard Microsoft Deal Google Nvidia Concerns

After taking quite the loss at the hands of Judge Jacqueline Scott Corley earlier this week, the Federal Trade Commission (FTC) has started the appeals process. Having initially been denied an emergency injunction that would have forced Microsoft and Activision to sit tight while the FTC's antitrust lawsuit took place, a decision that Microsoft said would 100% kill the deal if they had to wait, the FTC is asking the appeals court to review the ruling.

In addition, the FTC is seeking an extension to the current restraining order preventing the companies from completing their merge. That restraining order is set to expire tomorrow night, July 14th, at 11:59 PM PST according to Judge Corley's ruling.

The deal's deadline, according to the agreement between Microsoft and Activision, is only a few short days away on July 18th, as well. This means that the FTC is asking for an almost 24-hour turnaround time on an extention to the restraining order since an actual full appeals ruling is highly unlikely to be completed by the 18th. If the restraining order isn't extended, Microsoft and Activision could complete the merge early next week ahead of any appeal decision.

Courts can certainly expedite things, and may do exactly that in this large case, but even expedited, the deadlines are cutting things very close.

Lulu Cheng Meservey, CCO and EVP of Activision Blizzard Corporate Affairs, said in a tweet that "The facts haven't changed," and expressed confidence that the deal could proceed.

Microsoft President Brad Smith also told The Verge, "The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers. 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.”

All of this is on top of Microsoft and the CMA trying to smooth things out in the UK following the deal's rejection there. A process that could lead to the CMA feeling it would need to re-investigate things.

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In this article: Microsoft, Activision Blizzard.

About the Author

Michael Byrne
Michael Byrne, Editor in Chief
Mike “Magicman” Byrne has been a part of the MMOBomb family for years and serves as the site’s current Editor-in-Chief. His love for MMOs and gaming in general has led him to covering games for numerous gaming websites including Gamebreaker TV and XIV Nation where he proudly displays his fanboy flag for FFXIV:ARR.

Discussion (2)

weilan 2 months ago
FTC is such a tumor, they aren't doing anything useful, just manifesting their inferiority complex

cinterz 2 months ago
FTC seems to be doing this more out of spite, there is no issue or future issue of competition or lack of access as microsoft has been on the forefront of crossplay and much more, if anything this will open up many more doors, especially for some pc only games to get ported over to consoles in general.


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