Microsoft would be ready to fight in court to ensure that the acquisition of Activision Blizzard goes through if the Federal Trade Commission of the United States (ftc extension) should file a lawsuit against the Redmond-based company to block the maneuver, at least according to a Bloomberg source.
The deep throat of the newspaper, which for obvious reasons prefers to remain anonymous, claims that Microsoft has not had talks with the FTC regarding possible concessions with the aim of facilitating the approval of the acquisition.
According to Bloomberg’s source, the FTC is about to conclude its investigations and subsequently the body’s commissioners will vote to decide whether or not to create a case to be brought into court, confirming the rumors reported in a report by the New York Times. And apparently Microsoft is already preparing for the worst-case scenario and is ready to challenge the FTC’s decision in the courtroom.
Bloomberg antitrust analyst Jennifer Rie says she wouldn’t be surprised if US antitrust takes the acquisition to court, but points out that in a legal dispute Microsoft may prevail. In this case, however, the time needed to complete the maneuver beyond the deadline set by the Redmond giant, i.e. June 30, 2023, could be extended.
Another option for Microsoft, however unrealistic, would be to waive the acquisition of Activision Blizzard should the FTC try to block it. This is what happened in 1995 when the Redmond company abandoned the idea of acquiring Intuit Inc. in order not to find itself embroiled in a long legal dispute.
For Bloomberg, the best solution for Microsoft would be to try to get approval from the Biden administration and accept an agreement in which it undertakes not to deny Activision Blizzard titles to competitors. A condition that by the way shouldn’t create problems for Phil Spencer. That said, according to the portal, it could still prove to be a tortuous road as the American antitrust bodies are reluctant to make similar agreements.
Bloomberg says the FTC is taking a very aggressive approach against mergers, especially when it comes to technology and digital markets. In July, it sued Meta to stop it from buying virtual reality fitness app Within, arguing that doing so could eliminate competition in some markets.
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