As you well know, this week the judicial process regarding the purchase of Activision Blizzard by Microsoft took place, to which the FTC opposes. The parties involved have already given their arguments, but there is no verdict yet, when will it be announced? What happens if the FTC wins? Will the Activision purchase fall apart?
Last Thursday the 5th day of the hearing was held and in it both the FTC and Microsoft issued their final arguments to make the judge make her decision and issue the verdict that would be crucial for the agreement.
Why are the FTC and Microsoft fighting legally?
First, it’s critical to know why the FTC and Microsoft are in the middle of a legal battle. Clearly, the FTC wants to stop the company from buying, but this case or legal battle isn’t exactly about “stop it.”
The FTC is the plaintiff and opened the case with the objective of obtaining more time and for the judge to grant a preliminary joint injunction, which would prevent the purchase of Activision Blizzard King from effectively completing on the agreed date, July 18, 2023.
Why does the FTC want to buy more time? Because his objective is to block the purchase, but for this he first has to participate in a separate lawsuit that he filed in December of last year and which is scheduled for August 2, in which he will show his final evidence before the judicial authority to block the purchase.
Don’t forget to follow us on Google News.
Related Video: News Roundup for Week 25 of 2023
What if Microsoft or the FTC win?
Thus, whoever wins the battle does not determine the final destination of the purchase. However, it is extremely crucial.
The problem is that granting this extension to the FTC would so upset the deal that Microsoft would have to renegotiate the terms of the purchase with Activision Blizzard King and would be almost forced to undo it, which would mean paying $3 billion to Activision as break fee.
On the other hand, if Microsoft wins out, this would mean the purchase would go through before the FTC presents its evidence. Although the FTC could fight and even undo the agreement, it would be an uphill road and it is not ruled out that the regulator simply leaves the case behind, something similar with what happened with Meta and the acquisition of the virtual reality company Within, as refers The Verge.
In case you missed it: The CMA also wanted to delay hearing on the purchase of Microsoft-Activison Blizzard King.
Microsoft let it be known that it was contemplating skipping the UK if it were the sole challenger, which put some weight on the FTC, since if the preliminary injunction was denied, there would be no other body to block the release. purchase (although we do not doubt that Microsoft will do everything possible to also convince the CMA).
“The injunction requested by the FTC will therefore almost certainly ruin the transaction,” Microsoft said (via The Verge) and mentioned that there is no need for the preliminary order, since, even if the judge denies it, the regulatory body could obtain an effective remedy at the end of the administrative process in case of winning [en su audiencia de agosto] and in the end it could force Microsoft to get rid of Activision Blizzard King.
When will the winner of the case be known: the FTC or Microsoft?
Regarding the case from which the FTC and Microsoft await a response, after hearing the final arguments, the judge mentioned that it will not take months for her to deliver the verdict, jokingly, although she acknowledged that it is not a simple matter. Let’s remember that the judges, despite being very prepared, do not have deep knowledge about this kind of cases in the field of video games.
“I’m going to do my best. It’s complicated,” judge Jacqueline Scott Corley said.
Both the FTC and Microsoft still have until Monday afternoon to complete some legal process tasks. July 4th is a holiday in the United States, so as you mention IGNa verdict would be expected as soon as next Wednesday, July 5, but it could well come later.
Which side do you think will win the case? Tell us in the comments
You can find more news related to Activision Blizzard if you visit this page.
Related video: Pay to win? Microsoft is buying the video game industry
Stay informed with us, at LEVEL UP.
Editorial: Gaming / Facebook / Twitter / Youtube / instagram / News / discord /Telegram / Google news
