Thoughts Unboxed

The Ninth Circuit Court of Appeals today denied the Federal Trade Commission's petition seeking injunctive relief against Microsoft. This ruling paves the way for Microsoft to proceed with its acquisition of Activision Blizzard in the near future. Microsoft's President Brad Smith welcomed the swift decision. He said in a statement: We appreciate the Ninth Circuit’s swift response denying the FTC’s motion to further delay the deal. This brings us another step closer to the finish line in this marathon of global regulatory reviews. While the court's ruling is a significant victory for Microsoft, a major obstacle remains in the form of the United Kingdom's Competitions and Markets Authority (CMA), which has already rejected the proposed merger. Citing concerns over potential unfair advantage in the emerging cloud gaming sector, the CMA has been engaged in negotiations with Microsoft to explore alternative terms for the merger. With a deadline of

  The Competition and Market Authority (CMA) of the UK may be changing its position on Microsoft's acquisition of Activision-Blizzard. The authority has expressed openness to reconsidering its decision to block the merger if Microsoft can address the concerns raised in CMA's final report. CMA was the first antitrust authority to block the merger, citing concerns about the potential impact on the future of cloud gaming. Microsoft has challenged this decision, and a hearing is scheduled for July 28. However, Microsoft, Activision, and CMA have agreed to pause the litigation in the UK. This pause will allow the three parties to work on a satisfactory restructuring of the transaction. CMA's change in stance follows the FTC's loss of a motion for a preliminary injunction against Microsoft's acquisition of Activision-Blizzard. Brad Smith, Microsoft's representative, responded to the decision, saying: After today's court decision in the U.S., our focus now turns ba

  In an anticipated yet surprise win for Microsoft, EU Regulators have approved the proposed acquisition of Activision-Blizzard by Microsoft. However, it is not a completely free lunch for Microsoft. The regulators have imposed some conditions.  In a nutshell, the regulators found: Microsoft would have no incentive blocking Activision's games from Sony's PS Consoles In a scenario where Microsoft did withdraw Activision's games from PlayStation Console, it would not harm Sony in a significant way Regulators also put certain conditions for the merger to be approved: 10-year commitment for CoD to be on PlayStation Gamers in EU would get a free license for all current and future Activision's Games for the Cloud-Streaming Service of their choice provided they already own the license of those games. Cloud Streaming services would also be given free licenses to stream Activision's Games in EU countries

  FTC Chair Lina Khan has reiterated her commitment to protecting the future by implementing measures that create obstacles in the present. In a surprising interview with CNBC, Khan briefly discussed the Microsoft-Activision acquisition. She stated:   This matter is currently under active proceedings, so there are limitations to what I can disclose. However, the FTC filed a separate lawsuit to block this deal in early December. The Complaint highlights various concerns the Commission has, particularly in the console market, as well as the expanding and evolving cloud and subscription markets.   The Complaint focuses on multiple markets, including those that are still experiencing rapid growth and development.   We have witnessed time and again how these emerging markets require enforcers to prioritize safeguarding competition and innovation, ensuring incumbents do not stifle competition and innovation.   Considering the FTC's decision to exclude Nintendo from what it considers the