Microsoft & Activision vs FTC

 

Microsoft faces a five-day court case with the Federal Trade Commission (FTC) tomorrow, June 22, which will determine the fate of its $68.7B acquisition of Activision Blizzard.  The FTC is seeking a preliminary injunction to halt Microsoft from closing the deal before a separate legal challenge scheduled for Aug. 2. Microsoft has until July 18 to finalize the proposed acquisition, or it will be required to pay Activision Blizzard $3B in breakup fees or renegotiate new terms. In addition to the FTC, the UK's Competition and Markets Authority (CMA) blocked the deal in April. Microsoft is appealing that decision in a case set to begin in late July. Microsoft CEO Satya Nadella, Xbox chief Phil Spencer, and other executives will testify in the San Francisco courtroom. PlayStation Chief Jim Ryan and Activision CEO Bobby Kotick will also take the stand. Microsoft's exhibit list for the FTC case includes emails, one of which discusses "pettiness from Sony and GameSpots fanboy reviewers."  Last December, the FTC requested an internal administrative judge to halt the deal based on antitrust concerns, contending that it would grant Microsoft's Xbox exclusive rights to Activision games, excluding Nintendo consoles and Sony's PlayStation from accessing them. You can read the FTC's redacted complaint here.