Court ruling pushes Microsoft gaming deal closer
A US judge ruled on Tuesday that Microsoft, maker of the Xbox gaming console, may proceed with its planned acquisition of videogame maker Activision Blizzard for US$69 billion, dealing a blow to President Joe Biden's efforts to prevent corporate consolidation that some argue hurts consumers. Shortly after the judge's ruling, Britain's Competition and Markets Authority (CMA), which had objected to the deal in April, said it was prepared to consider Microsoft's proposals to resolve antitrust concerns in the UK. The deal would be the largest for Microsoft and the biggest in the history of the videogame business. Activision shares were up 11.3 percent at US$92.01 on Tuesday afternoon and Microsoft shares were flat. The Federal Trade Commission had asked US District Judge Jacqueline Scott Corley in San Francisco to stop the proposed deal, arguing it would give Microsoft exclusive access to Activision games including the best-selling "Call of Duty." The agency's concern was that the deal would potentially preclude the availability of those videogames on other platforms. In her opinion, Corley disagreed. "The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets," she wrote. Corley's decision is another setback in the Biden administration's efforts to step up antitrust enforcement efforts. The US court in San Francisco gave the FTC until Friday to appeal the judge's decision. FTC spokesperson Douglas Farrar said the antitrust regulator was "disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services, and consoles. In the coming days we'll be announcing our next step to continue our fight to preserve competition and protect consumers." Microsoft President Brad Smith said on Tuesday that the company was "grateful" for the "quick and thorough" decision. He also tweeted that his focus would now be on Britain. (Reuters)